The Most Common Premium Audit Bill Mistake
A devastating premium audit bill mistake occurs when no payment is made by the insured. The Workers Compensation premium audit bill is one of the most posted subjects in this blog. There are two reasons for the numerous postings.
- We receive the highest number of questions on the subject. We received two last night.
- There is a deadline in which to do something – pay or dispute it
One of the clauses in your insurance contract/policy that appears in the back pages (usually in smaller print) is the subject of the premium disputes. This language is usually mandated by each state’s laws on Workers Comp policies. Each state has its own set of rules on how to properly dispute the bill.
The mistake that some employers and governmental agencies make is to not pay any of the premium audit bills even if part of it is acceptable. All Workers Comp policies have a clause that reads similar to – You (the company) must pay any undisputed premiums before raising any disputes with (your insurance carrier).
You would owe the expense constant charge regardless of any dispute.
I realize that may not be the exact contract language in your policy. The example is very generic. The concern is to know what part of the premium audit bill should not be disputed. As I have posted very often, once you pay your audit bill in full, you obviously lose some leverage.
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