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Premium Audit Bills – Insured Cannot Afford Unexpected Increase


Workers Comp Question About Premium Audit Bills

An article reader recently emailed a question on the premium audit bills. When we were named “One of the Top 25 Blogs on Workers Compensation” last week, our blog increased in popularity dramatically. The #1 Question that we have received from our increased web traffic is one that we have answered before a few times, but it is worth repeating.

Picture of audit tag and calculator and money Premium Audit Bills Another Question

The Question – We have just received our Workers Compensation billing from one year-end premium audit. The premium bill was 25% more than our original Workers Comp premium. We are not sure if we can pay the bill. We do not understand the basis of how the premium auditor came up with the figures. What can we do?

The first thing to do is to not pay the premium audit bill until you understand what the billing was based on by the premium auditor. Make sure that the complete audit bill is provided to you, including the audit workpapers. Review the bill very closely to see if it makes sense.

If the bill does not make sense, call or write the premium auditor with your questions. Often, the insurance carrier will say that you only have 10 days to pay the billing. This may not necessarily be true. If the premium billing is disputed, you may have up to 30 days to pay the bill. Do not use the dispute as a way to delay paying the bill.

Picture Man reading Premium Audit Bills Form

One of my prior posts covers the “RED FLAGS” of Workers Comp audits. It may be good to look over that post. One of the main red flags is if there is a major change from your original policy.

If you are unsure of whether or not the premium audit bill is accurate, call in an expert. The best thing to do is not to just write a check if you have questions about your bill.

Attorney Guide: 101Attorney.com is an online attorney resource website that provides attorney news, attorney guide, attorney finder, etc.


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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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