10 Things To NOT Do Concerning Premium Audits
With premium audits, there are 10 things we recommended not doing at all. As most Workers Compensation policies renew on January 1st of each year, I thought I would post on what NOT to do from the time that the premium auditor calls to set up an appointment to the time your company receives the premium audit bill.
1. Ignore the premium auditor’s request for appointments. The premium auditor can assess a severe state-mandated penalty for not setting an appointment. This will also cause the auditor to raise a yellow/red flag of what is the company trying to hide?
2. Keep changing the premium audit appointments at the last minute. See #1.
3. Just handing the auditor a big pile of records and letting he/she sift through them. See my last post on what to do for record presentation.
4. Being argumentative with the auditor. Please remember that this person is just doing their job.
5. Not asking questions of the auditor. The worst time to discover a premium auditor’s opinion/thoughts is when you receive the premium audit results and billing. They are supposed to answer your questions as much as you owe them answers.
6. Ignoring the premium audit results or bill. Your state may have a specified time limit on how long you have to question the premium audit bill. If you wait too long, you will owe the bill.
7. Just writing a check. We see this so many times. The business owner or risk manager sends the check with the premium audit bill even though they may have questions. Question the auditor while they are at your business or when you receive the bill. Your company loses a large amount of leverage once the bill is paid.
8. Letting the audit bill sit on your desk. If your company cannot afford the premium audit bill, call their billing department immediately. Insurance carriers are somewhat flexible if you contact them early in the process.
9. Using the dispute process as a way to lengthen the time to pay. Always make sure that your point of dispute is solid. If you feel you have been overcharged, it may be a good time to call in an expert.
10. Not documenting everything. Always follow up a phone conversation with a letter, email or fax. Document all phone calls.
These are not all of my recommendations on handling the premium audit process. Most of these items came from premium auditors. The main thing to remember is for your company to not stand out from other companies.
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