Billing changes due to endorsements can catch policyholders off guard.

When agents receive a notice of an endorsement, they can help ease the concerns of policyholders by alerting them right away. Although clients may expect changes because of their annual premium audit, they may be less familiar with the process involving endorsements.

As a reminder, endorsements can be made for a variety of reasons, such as adding or removing a state of operation, changing their installment plan, changing their payroll amounts or changing their address. Sometimes these changes affect their premium amount; sometimes they do not.

At SFM, the premium audit occurs just after a client’s policy period ends, so at that point they are making payments on their new policy for the year — those payments could potentially go up depending on what was discovered in the audit. It should be noted that when there is an audit premium impact, it is billed more quickly than premium-bearing endorsements.

That’s why it’s doubly important to give policyholders a heads-up regarding any endorsements.

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