Upcoming Premium Audit For January 1st Renewals
The January 1st renewals for Work Comp policies have a premium audit approaching soon.
We receive many inquiries this time of year on preparing for a premium audit. There are numerous articles in this blog on premium audits, including preparation.
Please note that we do not and you should not accept help from any company that may look to alter your policy, payroll numbers, classification codes, or anything else from your policy as preparation for your audit.
One can refer to this South Carolina article on what can happen if you try to manipulate your numbers upfront. Your company should pay everything you owe each year for Workers Comp, but not one penny extra.
Auditors, by their nature, be they tax, insurance, or from other disciplines notice the insureds that are very unorganized. Excel(r) can be a great aid in organizing your materials.
If you have been through a premium audit previously, look over the old audit. You will likely be reminded of what the auditor was searching for in the data. If you organize the audit using Excel and then attaching backing data to the Excel spreadsheet, the auditor will much appreciate the effort.
Anything you can produce to aid the auditor in the work will usually result in a smoother insurance audit process.
A few other areas to consider are:
- Make sure you present all Certificates of Insurance for any subcontractors that you used during the last policy period
- There is no rule that allows any premium auditor to leave your premises with any of your company records.
- If , after receiving your premium audit bill, you disagree with your premium audit results, there are specific rules on disputing your audit.
- Make sure that you have someone available at all times for the premium auditor to consult with on obtaining further records or if there are questions about your operations.
Search for premium audit, dispute, or certificates of insurance in the search box for many more articles on this subject.
Article provided by James J Moore, AIC, MBA, ChFC, ARM. All articles are original content. Check out the full website at www.cutcompcosts.com