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Two Employers Are Having 23 Years of Workers Comp Premium Audits


Workers Comp Insurance Carrier – Two Employers = 23 years of premium audits

Two employers are suffering through 23 years of Workers Comp premium audits. These are sad but true cases of where two Workers Comp Insurance carriers have been trying to audit their clients for a total of 23 years in the past.

Vector Graphic Of Workers Comp Two Employers premium audits Man And Woman

One of the employers has already been audited twice per year for eight years, but that is not good enough for the insurance carrier. The other employer has had audit requests going back 15 years.

This is becoming more prevalent as workers comp insurance carriers are trying to increase their intake of premiums without having to incur any more risk.

Did these two employers do anything wrong?  No, as they allowed the premium auditors to go over their books each year.  Do the insurance carriers have the right to re-audit or re-reaudit employers?

The answer to both questions is an emphatic – no.  The insurance carrier premium auditors get their one shot to audit premiums.

After that, there is a little grey area, but insurance companies are not allowed to keep auditing the employers.

What can an employer do if there are multiple audits with requests for even more audits for the same year?  If the insurance carrier threatens cancellation if they are not allowed another audit, the scenario can become very complicated.

I recommend:

  • Knowing or exploring your state’s Workers Comp audit rules
  • Writing a letter to the premium auditor advising them that they have already audited your company’s Workers Comp payroll and class codes
  • Contacting a premium expert
  • Complaining to your state’s insurance commissioner only as a last resort and/or if there is a pending cancellation

    Hand Presenting Workers Comp Premium Audits Strategy
One of the caveats of this advice is the employer must have  100% cooperated with the premium auditor during the premium audit.  I have posted previously on cooperating with the premium auditor.  You may want to use the search box at the top right part of the web page or just scroll down until you find the information on what information a premium auditor can examine.

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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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