Estimated Premium Audit On Workers Comp Policy – Question

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Estimated Premium Audit Bill From Carrier – Why?

The estimated premium audit usually results from a lack of information provided by the employer.   

We just received an estimated premium audit and billing. for our worker’s compensation policy.  Why did this happen?  – A blog reader emailed this question earlier this week. 

Was the premium auditor able to make an appointment to perform the payroll audit?

If not, the auditor only has so many days after a Workers Comp policy expires to perform the audit. The audit is estimated in order for the billing to be produced and mailed to you.

If you wish to dispute the estimated premium bill,  you must still pay any undisputed premiums by the due date on the audit billing. Do not ignore the estimated audit and bill. It could lead to the cancellation of your policy.  If your company receives an estimated audit, then you should call the phone number on the premium bill to set up an appointment.  

Graphic of Estimated Premium Audit And Bar Graph
StockUnlimited

Was the premium auditor able to access all the records they need to see to be able to perform the worker’s comp premium audit? The auditor has the right to see any of your records. I had posted this a few weeks ago. If the auditor is not able to review the applicable records that you have in your possession, they will have no choice but to do an estimated audit and bill.

All of the rules on Workers Comp audits and the employer dispute process must be in your policy.  Read them very carefully for how to proceed if you have a dispute. 

Most states are very picky about what the insurance carrier includes in the policy. The insurance policy may be a boring read. I recommend it before signing any policies.

 

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Table of Contents

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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