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?
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, 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 can 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 in a comment.
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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.
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