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Premium Audit Bill Payment Question From Employer


The Premium Audit Bill Arrives Without Explanation

We receive this premium audit bill question quite often. I wanted to reiterate what how an employer should handle the situation.

Graphic of Man in Road Question Mark Premium Audit Bill Auditor Question

The question is – Our company received a workers compensation premium audit billing from our insurance carrier. We did not receive any audit results, just a bill. How do we handle this situation?

 The premium auditor will sometimes leave his/her results with you at the time of the audit. This is rarer now than in the past. Usually, you will receive the results of the audit approximately 14 – 30 days after the premium auditor visits your business.

The premium audit billing will usually arrive 30 – 60 days after the auditor has performed the audit. The bill will usually ask for payment within 10 days. The audit billing may have a copy of the audit attached to the bill as your first notice of the premium audit results.

If you only receive a bill without having seen any of the results, I recommend writing the insurance carrier (certified return receipt) and ask for a copy of the audit results. The carrier will usually provide an address for questions. You should receive the audit results back from your request letter within two weeks. Written documentation is very important.

I do not recommend calling your insurance carrier. You are legally entitled to the audit results – including any auditor workpapers. You are not actually disputing the audit by asking for the supporting documents. If you decide to dispute the audit, that is another matter.

Each workers comp insurance carrier has their own audit process schedule. The audit process is somewhat dictated by state law and the NCCI or State Rating Bureau. One of the easiest places to find the audit rules is actually in your policy. There are very specific time lines the carrier must follow in the premium audit process.

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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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