Workers Comp Insurance Carriers and Premium Audits
One of the major trends that we are seeing right now is that quite a few of the Workers Comp insurance carriers are becoming much more assertive on their Workers Comp audits. In this economy, one cannot blame the insurance carriers for trying to collect all funds that they are owed by the employers.
However, we have seen where a carrier has performed three premium audits in one year. This is quite excessive as the year end premium audit would have taken care of any premium underpayments .
The client called us in asking why there should be so many audits as it basically shut down their offices for one or two days. That made our client have to shut down their offices for 6 working days per year. Is this outrageous? If you check your Workers Compensation insurance policies, the insurance carrier has a right to audit your company’s insurance policy anytime during the policy and for up to three years after the policy period expires.
We are of the opinion that the employer should be audited once per year just after the policy period expires, and only once.
Next post – We will discuss what you have to turn over to the insurance company’s premium auditor during a premium audit – the answer may shock you.
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