Hybrid Premium Audits May Become Future of Audits (Almost)
Most Hybrid Premium Audits on a Workers Comp policy are when the insurance company auditor asks for the material required to perform the audit without visiting the client’s business. As the Internet has made the flow of information much easier, hybrid audits can take many forms.

They are becoming more popular as a cost cutting measure for the insurance carriers to save on travel and personnel costs. Hybrid Premium Audits may become more popular over the next few years. The advancements in technology such as PDF’s reduce the size of an emailed document.
A Premium Auditor performing a hybrid premium audit may request a scan of all the required material be emailed to them for review. There is basically no cost to the insurance carrier or employer if all documents are scanned.
One of the concerns over this type of audit is the insured employers have to send data outside the company versus a physical audit. Many states require an in-person physical audit. The hybrid audit may not suffice due to that rule. Some employers have favored this type of audit to reduce the stress of a physical audit.
One area to make sure that remains constant throughout a hybrid premium audit is your company has to appear accurately on paper. The documentation has to show that for instance, a certain work performs certain job duties the same as if the premium auditor had performed an in-person physical audit.
Lately, one area of concern consists of subcontractors and staffing agency supplied temporary employees. The premium auditor has to know without a doubt that these subcontractors and temp employees are not your company’s responsibility for workers compensation coverage.
As time passes, we shall see the success/failure of using hybrid premium audits.
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