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Paying Premium Audit Bill – I May Have Been Misunderstood


Paying The Premium Audit Bill  Misunderstanding

Last week, I wrote a post concerning paying the premium audit bill.  I have heard from a few of our weekly newsletter readers that the title of the newsletter article and the article itself sounded like an employer should just pay the bill. I apologize as nothing could be further from what I had intended to say on workers compensation premium audit bills.

Premium Audit Bill Graphic Coins Stacked Concept
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One of the best comments I have ever heard or possibly read referred to any bill. Your company should pay what you owe, but not a cent more. Premium audit bills are no exception. A piece of advice that I post on often is to pay the undisputed amount and not just refuse to pay any of the bills whatsoever if there is a pending dispute. If you feel that you do not owe a partial amount on a bill, then pay the undisputed amount when the bill is due. Your company does not have to pay the disputed amount – if it is based on a valid dispute.

Recently, and I think it is due to the economy, I have received numerous calls and emails where a dispute process was entered into with the carrier to delay paying the bill. That is one of the quickest ways to ruin a company’s reputation with their agent and carrier. A word of caution – expect a cancellation notice from your carrier if this has happened. Insurance carriers are becoming much less patient with invalid disputes.

Woman Doing Premium Audit Bill On House Floor

I do not mean to sound like a Workers Compensation insurance company advocate. I am just reporting what we have seen over the last two years in the insurance environment. There are no new companies being created and most companies have reduced their staff. Workers Comp carriers have seen premiums fall quickly. Their margins have become thinner.

What is an invalid dispute? Any dispute where your non-payment is based on the insurance policy and premium audit bill was just too expensive. Your company needs to have re-calculated the premium audit with real and true numbers. The insurance carrier’s audit department will need something in writing within 30 days maximum on the basis for your dispute.


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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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