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Preparing For Workers Comp Audits – Seven Suggestions


Seven Suggestions – Preparing For Workers Comp Audit

I wrote seven suggestions on preparing for Workers Comp Audits.

I have read many guides, manuals, and blogs on how to prepare for a Workers Compensation premium audit. Some of the suggestions were borderline, if not completely illegal. As this story on fraud points out, trying to manipulate the premium audit will only end up costing your company.

Graphic bulb with gear inside Seven Suggestions Workers Comp Audit

My main recommendations are:

  • Have everything organized with spreadsheets. Premium auditors are under time pressures. The easier you can make their audit process, the better the results. Handing the auditor a pile of unorganized papers or computer files is never a good idea.
  • Follow the audit letter to the nth degree. The premium auditor will send a letter a few weeks before the audit spelling out everything needed for the audit.
  • Having someone that is very familiar with your company assist the auditor is advisable. Assign this person to answer ALL of the auditor’s questions and to obtain additional information requested by the auditor. Nothing good has ever come of having many different people meet with the auditor.
  • This is a debatable point – there is no requirement that the auditor can leave the premises with copies of any records.

    Woman Reading Seven Suggestions Notepad
  • Ask the auditor to leave a copy of his/her workpapers and background info on the audit. This material is very important if you have questions when the premium audit report and bill is provided by the carrier.  Ask for them at the premium audit meeting before the auditor audits your payroll and policy. 
  • As with any audit, it is best not to argue with the auditor. There is a dispute process if you disagree with the final results.
  • Read your Workers Comp policy. This will often answer many questions and clear up any confusion about the audit results.

The subject of preparing for workers comp audits should not be a stressful experience.


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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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