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Workers Comp Insurance Premium Auditor – Who Exactly Are They?

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The Main Role Of  The Workers Comp Insurance Premium Auditor

The Workers Comp insurance premium auditor works for or is hired by the insurance carrier to perform premium or payroll audits. The most calls and emails that we receive are just after a company has received their yearly Workers Comp payroll audit and has been charged an additional amount of money beyond the initial funds paid when the original policy was issued.

Graphic of Money Tree Workers Comp Insurance Premium Auditor Concept
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The Work Comp insurance company auditor usually will come in person within 60 days of the end of the policy period. The payroll auditor reviews all of the documents needed and then either issues a credit or an additional billing.

Our statistics show that well over 80% of the payroll audits result in an increased bill. The post-audit premium bill can be substantial. Sometimes there are valid reasons for an increased bill, such as more payroll.

Before disputing an audit make sure your payroll did not increase heavily.  If so, then your business is successful (congrats!) and that might be the reason.  Usually, an employer will have a gut reaction to the premium audit if there is something amiss.  Gut reactions are usually correct.

One thing to remember is that the auditor can just about change whatever they want and deviate from the policy. They work for the insurance carrier and they are usually overloaded with companies to audit. Most of the mistakes that we see with a company’s workers comp premiums occur at the time of audit by the insurance premium auditor.

You have received a bill after the audit that says pay within a certain number of days. What do you do?

We will cover that in our next post. Workers Comp Audit Bills

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James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications

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