The amount you pay for professional liability (E&O) insurance is based on your total payroll. We charge you a percentage of your payroll. The percentage, also called your rate, is based on a variety of factors including your industry and the nature of work your employees perform. We require a professional liability audit, which helps us ensure you’re paying the right amount for your coverage. It involves sending us documents that we request so that we can evaluate them and you pay based on your actual employee payroll during the policy period. If the actual payroll is higher than you estimated when you purchased the policy, we send you a bill for the difference. If the actual payroll is lower, we send you a refund for the difference.