Premium Auditor Definition
Workers Comp Premium Auditor – an individual who performs the audit of remuneration at the end of a policy period. The premium auditor may be an employee of the insurance company or a contractor hired by the insurance company.
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He or she contacts the insured, on behalf of the company, to determine the actual exposure that occurred during the policy period. The determination may include viewing the appropriate business records either at the insured’s or accountant’s office, or they may request verification through the mail.
The auditor has the right to view all business records. It is recommended that an employer run full payroll reports and a summary report for the premium auditor. Any subcontractors should be pointed out on the reports and verified by a Workers Compensation certificate of insurance.
Always make sure to obtain a copy of his/her business card. Your company may need to contact the auditor at a later date in some cases. Emailing the auditor is the preferable method of contact.
The auditors are not licensed as are agents and adjusters. There has been much discussion over whether premium auditors should be licensed. To date, no states have made this requirement
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