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Hybrid Workers Comp Premium Audits – New Trend?


Hybrid Workers Comp Premium Audits Now More Popular

Hybrid workers comp premium audits seem to be rising in popularity very quickly. I noticed this term popping up on websites and premium auditing company booths at conferences. Two years ago, an auditing company at a conference started explaining this new (?) method of performing audits. I had written this definition on hybrid premium audits some time ago.

Icon Auditor magnifying glass Hybrid Workers Comp Premium Audits blocks

Almost all employers now have scanning and email abilities. The need for in-person on-site audits by insurance carriers will very likely incur a reduction over the next few years. Some employers will require an in-person audit regardless.

The main driver behind hybrid workers comp premium audits is the cost of obtaining an audit of an employer’s operations. Costs such as travel are easily reduced using this type of audit. As carriers’ profit and investment incomes have fallen, any method that will reduce overhead has to be heavily considered overall.

Hybrid workers comp premium audits are actually nothing new. The carriers and audit companies are basically mimicking the practice that has been in place for years with companies that perform Workers Comp premium audits for employers. As I mentioned before, certain employers and organizations will require an in-person audit. I see the need for in-person on-site audits shrinking rapidly.

Hand Presenting Hybrid Workers Comp Premium Audits Icon

Even the small employers have now become very sophisticated in their record keeping. Many employers can provide spreadsheets of almost any type on demand. I think insurance carriers and the auditing companies they hire will very likely move to hybrid audits for employers that had the same premium auditor on a past audit, unless of course the employer has changed some of their job functions.

I have never been too keen on telephone audits as an alternative to on-site premium audits. We have seen too many mistakes made on this type of audit. Self-reporting audits made by the employers have also caused many problems.

I will write another post on this area within a year. I will look back over the year to see if hybrid audits are more popular.

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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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