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Do We Have To Pay Premium Audit Bill Now – Not Exactly


Do We Need To Pay The Premium Audit Bill Immediately?

All employers have concerns on whey they should need to pay premium audit bills as soon as they receive them from their insurance carrier.

Picture Of Audit Bill Calculation

As I have mentioned often, employers call or email us with this question more than any other by far.

The insurer is usually preparing to cancel the employer as they have not paid their premium audit bill timely. I received an email with this exact concern just before I wrote this post.

We usually respond – If you owe it, then you owe it, and if you do not owe it, then you do not – if there is a good reason to dispute the premium audit.

The rule in any state is that the employer must pay the undisputed part of the premium audit bill. We usually see on the premium audit bills some type of statement that says – Please pay or dispute in 10 days.

Your company actually has more than 10 days in most states as the time limit to dispute an audit is usually at least 30 days. In the Workers Comp policy, hidden in the back pages is the same statement limiting your company’s time to dispute or pay to 10 days. The state insurance laws have the final say.

In most cases, your company will not be bothered by the insurance carrier for 30 days.  Most states agree with the 30 days.

In our opinion, an employer needs some time to:

  1. Request the audit workpapers and review them.
  2. Decide whether a dispute is warranted
  3. Consult their agent
  4. If necessary, have the workpapers and premium audit bill reviewed by an expert consultant.

This blog is full of advice on how to handle this situation. The main thing to not do is to file the bill away in a drawer and ignore it.

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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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