WC Premium Audit Bills Always Generate Calls and Emails
The workers comp premium audit bills cause us to receive calls and emails on a daily basis.
We are always glad to hear from former and potential clients for our Workers Comp services.
The most popular post and the #1 subject on the calls and emails is when an employer receives a sizable Workers Compensation premium bill they were not expecting.
I have posted on this often. I will still post on the subject as long as we receive inquiries on this controversial subject. Here is your game plan on how to deal with the bills.
- Do not panic as bringing emotions into a business situation will end up costing your company in the long run.
- Do not just send a check if you do not feel you owe it. Once you pay a Workers Comp premium bill, you are going to lose 90% of your leverage.
- Do not ignore the premium bill. That may cause your current Workers Comp policy to be cancelled.
- There will usually be an explanation of the premium audit bill sent with the bill or just before it arrives. Look this information over carefully.
- You can call the auditor to discuss the bill. Make sure you have your “ducks in a row” before making the call. Winging it may cost your company even more $.
Always make sure that you put everything in writing. Insurance carriers usually have huge offices and you need a paper trail to show that you complied with the rules
- Do not call or write a dispute just to delay the bill. That never works and can ruin the business relationship that your company, agent, and carrier have in place.
- Make sure you have valid points to dispute. The premium audit bill being too much is not a valid point.
- If your business grew quickly, then your company may owe more Workers Comp premium due to an increase in payroll. Never assume this is the reason for the increased premium.
- Never threaten to take all of this to the Insurance Commissioner as a complaint unless you have exhausted all other means.
- If you are in over your head, then consult with an expert company on Worker Comp premiums and reserves -yes, that would be “J&L”
The bottom line is your gut reaction to the bill. We have found that the best indicator of possible premium overcharges is that if you feel that something is amiss.
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