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 has 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.
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.
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.
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