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Premium Audit Question On Offsite Data By Premium Auditor


A Premium Audit Question On Employer Data Privacy

A great premium audit question came in from one of our blog readers last week.   One of our readers who handles the accounting for a large multi-state construction company asks “Can the insurance premium auditor take private company data off-site to examine? Is the premium auditor supposed to ask our permission? Do we have to allow this?

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Each state has its own insurance company premium audit rules. It is always best to accommodate the premium auditor with whatever data they request – but only on-site, if you wish. Taking any of your company data with them is not required under the insurance contract.

I just read through a major carrier’s policy on that issue. It basically says you have to provide the requested data. I do not see where the information is allowed off-site. Please note, that I am not saying that you should always refuse information being taken off-site.

We have had a few clients indicate the auditor told them that they could take any info off-site at any time. That is not true in most cases.

I love questions from our readers. If anyone has a question, feel free to email me or add a comment.

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One Response

  1. I know of no requirement to let the auditor remove the records from the insureds site. While the policy does require access to the records I am 95% sure the insured has the right to indicate where the audit will be done – within reason. In my 30 year experience in Premium Audit the insureds records are private, proprietary and cannot be removed from the insureds premises without permission.


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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