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Workers Compensation Audits For Public Employers Hits High Point

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Audits For Public Employers Upcoming

Premium audits for public employers are about to increase dramatically.

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Most public employers have a renewal date of July 1. Your auditor should be contacting you, if they have not already done so recently. The highest number of policies for private employers renew on January 1.

The time cycle for audits is usually 30 – 45 days after your policy expiration date. I always recommend, especially with larger employers, that any mail from the carrier be handled by one person. I have seen large public and private employers receive a non-compliance audit because the letters from the carrier had either been destroyed as junk mail or routed to the wrong department.

If there is no premium audit appointment set after a few letters and time passes, the auditor can actually increase the estimated premium audit up to 300% of the estimate. The premium auditor would have called by then, but if the letters advising of an upcoming audit go unanswered, then the auditor’s phone calls are likely not being routed to the right person either. I have seen this happen more than a few times.

There are a few dubious companies that have written books or have a website that will guarantee they can prepare you for a premium audit weeks before the auditor arrives at your workplace. As with the case a few years ago in South Carolina, that is not a good choice. There is nothing wrong with having someone assist your organization at the time of the audit. There are a few reputable companies that may help your company before the audit. It pays to be very careful.

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As always, the best advice is to have everything organized. Getting together a ton of paper for the auditor to review is not always the best tact. If you review the premium auditor’s letter, they will usually ask to have certain documents prepared for their visit.

Organizing those documents with a spreadsheet cover will help the premium auditor and your company finish the audit quickly and accurately.

One of the questions I receive – sometimes right in the middle of a premium audit – concerns allowing the auditor to take records offsite. There is nothing in the rules that say you must comply with this request. I do not recommend it.

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James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt 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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