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Premium Audit Bill – Call To Action – Five Things To Do


Premium Audit Bill – Five Things To Do

The five things that you should do with a premium audit bill.  I am going to let everyone in on a little secret. Where does most of our employer premium audit business come from overall? We very often receive emails and phone calls from employer that have overdue premium audit bills and want to reduce the bill. Our other main source of business is when the business owner or risk manager basically feels that there is something wrong.

Graphic of Gold Coins premium audit bill
(c) 123rf

A business will lose some of its leverage when it does two things. The first is to just pay what the premium auditor has calculated. The second one is to sit on the bill and not doing anything about it. A bill that was paid without a review or a bill that is now overdue makes the premium audit review process of employers much more tedious and complicated.

The five things that a business should do when you receive a Workers Comp audit bill are:

1. Look over the premium auditor’s worksheets if available. There will usually be a breakdown of how your company was audited.

2. Call or write the auditor to ask how they came up with their numbers if any part of the audit does not look correct to you. The auditor is bound by state Workers Comp insurance laws to respond to you.

3. If you still disagree with the auditor’s assessments, then you have the right to dispute them. Most insurance company premium bills say that you have only ten days. The state insurance laws usually differ and allow you a longer amount of time to dispute the bill. However, a Workers Compensation policy is a contract. In other words, there is a grey area there. The bottom line is that you are on a time clock to respond to the bill. It is best to not use the dispute process as a way to delay paying a bill. All this will do is ruin the business relationship you have with your insurance carrier and agent.

Graphic of premium audit bill Concept

4. If for some reason, you are unable to pay the premium audit bill, contact your insurance carrier immediately. Most insurance carrier collection departments will try to work something out with you. This may not apply to all insurance carriers. Making the first contact is much better than trying to work something out with an overdue bill pending.

5. The bottom line is to not let the bill sit or file it away. The Workers Comp premium audit bill is a call to action to either pay it after a full review or to question the audit and to dispute any incorrect areas.

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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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