A No-Go Workers Comp Situation
This is a Workers Comp Situation J&L Risk Management Consultants tries to avoid as much as possible. We have received a few calls this year asking us to help prepare a company’s books for an upcoming Workers Comp audit. We will not ever and have never suggested or recommended cooking the books for a premium audit.
The insurance company premium auditors of today are very adept at finding where payrolls (remuneration) have been paid. A premium auditor usually goes through all the payments that a company has made and will verify what type of vendor and payment was made to another individual or company. Subcontractors have become a hot issue in premium audits.
We have never suggested that a company try to cheat or mislead a carrier on their premiums. This is not our role in helping employers with workers comp premium audits. If after an audit you feel that your company was incorrectly overcharged a premium then that is the best time to contact us.
As you may have seen in various Workers Comp publications, a Workers Compensation Consultant out of South Carolina was charged and convicted of fraud for improperly reporting payrolls for companies. Companion Insurance Company had discovered the underreporting when an employee was severely injured.
If a Workers Comp consultant ever offers to help you misreport any numbers, then you should look elsewhere immediately. There is an old saying that has been around for many years. “You should pay what you owe, but not one cent more.”
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