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Workers Comp Audits – Five Effective Ways To Prepare

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Five Ways To Prepare For Workers Comp Audits

These five Methods For Workers Comp Audits preparation will remove some of the premium audit stress.

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If you are a company that is large enough to not self-report your Workers Compensation payroll, you will experience the insurance company audit process. There are many ways to prepare for an audit. I will list five that will make the process smoother for your company and the premium auditor.

1. Organize your payroll using back up reporting to justify all payroll. QuickBooks and any other accounting package will be a great way to provide the premium auditor with concise and organized reports. Making the auditor’s job easier will always increase the accuracy of your Workers Comp premium.
2. Have a designated person to answer all of the premium auditor’s questions. That person should be present the complete time the auditor is at your place of business. This will enable the auditor to receive consistent answers and have a “go to” person for follow up questions or request for more information.
3. Do not have the audit off-site. This is one of the main reasons that we find inaccurate premium audits. Your accountant’s office may not help the auditor with figuring out what you do in your business. A plant tour is usually a good idea.
4. Make sure that all subcontractors are noted and pointed out to the auditor.  Certificates of insurance from the contractors your company uses which are provided to the premium auditor will avoid any confusion.
5. Make sure that you obtain all contact information from the auditor before they arrive at your place of business.

There are many other ways to prepare. The bottom line is that your records and reports represent your business to the auditor. Neatness counts.

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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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