The Stakes: A family-owned trucking company received a nasty surprise: a bill for an additional $15,129 after their final audit. They were ready to pay it, assuming the insurance company’s math was correct.
The Investigation: The Advisor placed the bill under protest and requested the raw worksheets. They discovered the policy had a “Split Normal Anniversary Date,” meaning rates changed in the middle of the policy year.
The Breakthrough: The auditor had “front-loaded” the payroll into the first half of the year, which happened to have higher rates. The Advisor built a spreadsheet proving the payroll was actually evenly distributed, meaning much of it should have been billed at the lower rate.
The Result: The carrier’s audit supervisor admitted the error. Instead of paying $15,129, the client received a refund of $3,811. Total Swing: $18,940.