For Late Payment Workers Comp Carriers Cancel Policies
According to the Workers Comp it can carriers cancel policies for late payment of premium.We recently received a great question about Workers Compensation carriers cancelling policies for late payment of premiums that resulted from a premium audit.
Yes, a Workers Comp insurance carrier can cancel your current policies for late payment of premiums after receiving a bill. Often you are only given 10 days to pay ONCE THE CANCELLATION NOTICE IS SENT. Your company will usually have a set amount of time to pay the bill once received. These are usually two separate events.
Please see the last few postings that I have written on what to do once your company receives a premium bill. If you receive a cancellation notice and you have questions on the accuracy of the premium audit and the subsequent billing, you have given you and your company very little time to examine the premium bill and audit.
As I have posted very often, once you receive the premium bill, you have a limited amount of time to act on it. Once you pay the bill, you have lost some of your leverage. The main thing to remember is not to just file the bill or ignore it.
Due to the economic environment, the Workers Compensation insurance carriers have become much more aggressive in collecting late premium payments. I must say that I cannot blame them for cancelling a new policy if an old one is not paid on time. Even if you think the bill is correct and you cannot pay it, you must still contact the insurance company immediately. If you are unsure if the premium audit and bill are correct, it would be best to call in an expert premium consultant.
Please remember that the clock is ticking when you receive the bill. If you do not agree with it your company can dispute it. However, as I have said in many posts, do not use the dispute process to delay paying a premium bill. That will only ruin the business relationship you have with your agent and carrier.
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