Readers Question on What To Do With Premium Audit Bill

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What To Do (Not) – WC Audit Bill

Workers Comp – what not to do with the premium audit bill. I received my Workers’ Comp payroll audit results. The auditor says that I owe $67,587 more than I originally paid for my policy. We are a small company and that is going to kill our budget. Any ideas on what to do?

100 dollar bill What To Do back to back photo
Wikimedia Commons – Sar Maroof

We have commented on this question very often. Please check out prior blogs on this subject. The main thing I wanted to mention today was what not to do, which can possibly cost you even more premium dollars.

Do not:

  • Call up your agent or auditor and protest the bill without any backing to the protest. That may damage the relationships you have established.
  • Ignore the audit results or the bill – you may lose your chance to protest the bill, if necessary, and your carrier may cancel your current Workers Comp coverage
  • Panic, as you have time to look into the bill. Sometimes the bill will give you ten days, but in most states, you have up to 30 days. 
  • Write a protest letter without looking at the numbers.
  • Write the insurance commissioner – worse thing to do initially
  • Try correcting the bill on your own – you may cost yourself more $.

    Lady Holding Cash What To Do Standing
    StockUnlimited
  • Think you can only protest the one bill – you may be able to go back many years to protest old bills, depending on the state
  • Think hiring a premium expert is too expensive
  • Protest the bill without reading your initial policy
  • Protest the bill without knowing your classification codes and what they mean
  • Just give in and write a check if you feel something is wrong. The word WHY is a very strong word to use. Most of the contact we receive from employers is when they have a “gut feeling” something is wrong.

Up Next – We will review what to do when you receive a Workers Comp Audit Bill

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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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