Term Of The Day – Workers Comp Premium Audit
A Workers Comp Premium Audit – A methodical examination of an insured’s operations, records and books of account. The audit is performed to determine the actual insurance exposures for the coverage provided and concluded with a report of the findings.
A premium audit will be conducted on your Workers’ Compensation or other commercial insurance policy. The primary function of the audit process is to determine the actual payroll, sales, subcontract cost, or other exposure used in calculating the final premium on your policy. Your premium will be adjusted as a result of the audit. If exposures have been underestimated, an additional billing will result. If exposures have been overestimated, a billing credit will result.
There are three types of Workers Comp premium audits – mail, telephone, and physical . Policies with large premiums will usually require a physical audit. Premium audits are usually completed 30 – 60 days after a workers compensation policy expires. The Workers Compensation premium audit bill will usually arrive within 30 days after the premium audit.
Please remember that you are on a time clock to either pay or dispute the bill.
An audit can be disputed if they employer disagrees with one or more parts of the way the business was audited by the premium auditor.
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