Workers Comp Audit Stress Reducer
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#1 Question on Workers Comp From Our Readers


Our Readers #1 Question

Drawing of #1 Question Graphic

The #1 question we receive from employers usually involves a premium audit bill.

Q: I have just received an audit billing of $47,500 from our Workers Compensation policy from last year. What do I do now? My total premium for last year was $93,000. The bill is for over 50% of what I paid last year.


  1. Do not just pay the bill. Do not just write a check and assume it is a part of doing business. Once you write the premium audit billing check, you have lost a large amount of leverage.
  2. Ask for a full breakdown of the premium billing and why it changed.
  3. If it was due to tremendous growth by your company and payrolls spiked, you likely owe it, but just make sure you understand where the increased figures all came from before writing the check.
  4. If the premium audit bill was due to a major change to your policy, you should be very wary of what changed.
  5. If you do not feel comfortable writing the check, please consult a premium audit specialist company. That, of course, is what we do every day.

    Woman With Bank Check #1 Question Vector Image
  6. You may have a deadline in the number of days to appeal the audit. Do not wait until the very last minute, as there may be penalties for not responding if you question the payroll audit. Always use certified return receipt mail if you decide to launch a dispute.
  7. Along with #6, do not call or email for premium audit help if the deadline to pay or dispute the audit is in a few days.
  8. Do not just dispute the premium audit bill because you think it is just too expensive. You must have some basis for your dispute. Remember, this is the same agent and workers comp insurance carrier that you will have to deal with next year.

#1 – #8 from above is why we say “Stop just writing checks.”

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James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management 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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