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Insurance Company Auditor Workers Comp Financial Record Access


Workers Comp Insurance Company Auditor Financial Records Access

Should an insurance company auditor access my financial records?  This was a question from one of our blog readers. We have seen this situation a few times when we audit workers comp reserves or premiums for employers.

Picture of man doing Insurance Company Auditor Access financial records Writing on Notes

It is never a good idea to refuse access to your records by the workers comp auditor. The auditor will report your company as being non-compliant back to the insurance company. Every state has its own rules on how an employer can be charged premiums for non-compliance with a workers comp auditor’s request.

Many states have bolstered the audit non-compliance laws.  Some states have increased the penalties for non-compliance.

The insurance carrier will usually charge 300% of the estimated premium. The workers comp carrier will also issue an immediate cancellation notice if they are the carrier of record.  California’s WCIRB will leave out the payroll data to offset the claims, which can be a very severe penalty for a small employer.  

The auditor will also be very inquisitive as to why they were not allowed access.   Causing a controversy before the audit begins may result in your company facing extra scrutiny.  This will also harm the relationship you have with your agent.

There are many ways to dispute an audit if you disagree with the results. It is not a very good idea to dispute the audit before it even occurs. You have the right to have the audit at a time that is convenient for you and your company.

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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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