This page is for franchise owners filling in revenue, payroll or subcontractor numbers for a quote or a renewal. Those estimates set your premium. Getting them right keeps your price fair and your audit small.

Start from last year, not your goal

Base your estimate on what you actually did this past year, within about 10% either way. An ambitious goal feels good, but if you report triple last year's revenue, you pay premium on revenue you haven't earned. If you're new, use the numbers in your business plan and tell your consultant they're projections.

Insurance companies also notice big swings. Steady, realistic numbers build trust and better terms over time. Try not to change an estimate after you see the quote unless the first number was wrong.

Know whether your policy is audited

How much the estimate matters depends on the policy.

• Audited policies, such as most workers comp and many general liability policies: the carrier checks your real numbers after the policy year and adjusts the premium. Report too low and you get a bill. Report too high and you may get a refund, but not with every carrier: some keep the difference, and some charge a higher rate on anything well above your estimate.
• Non-audited policies: the carrier relies on your estimate and doesn't adjust it later. Overestimate and you overpay with no refund. Underestimate and the carrier can ask for your financials.

Your consultant tells you which of your policies are audited and how each carrier handles the difference.

Update us during the year

If your payroll, revenue or subcontractor costs rise by about 15% or more mid-year, tell us. We update the policy so the premium catches up gradually instead of all at once at audit. Rikor also reaches out during the year to check your numbers.

Look at the rate, not only the total

Your premium is a rate times your exposure, such as a dollar amount per $1,000 of payroll or revenue. If your premium went up because your payroll grew, your rate may not have changed at all. Ask your consultant for the rate when you compare years.

What we ask for

• Gross annual revenue
• Annual payroll, split by job type if you have office staff and field staff
• Subcontractor costs, and whether each subcontractor carries their own insurance
• Locations, vehicles and drivers

Questions? Email support@rikor.io.

Related: Premium audits: what they are and how to avoid surprises · How your renewal works · Pay-as-you-go workers comp