Seven Premium Audit Resolutions
The seven premium audit resolutions to reduce stress are below.
As the premium audit season rolls around every year, I usually post quite a few articles on the subject. The reason that this time of the year is called premium audit season is that most policies renew and expire on January 1st.

Your company does not want to stand out from the pile of audits that the premium auditors face every week. For the most part, Workers Comp premium auditors are overloaded as are most insurance company personnel. They are usually on a very tight schedule.
Premium audits are usually scheduled not long after policy expiry. Even if your current policy did not expire on January 1, the list can be useful whenever you are audited in the upcoming year.
The seven best premium audit resolutions for your company are:
- Organization is the key. An unorganized group of records will immediately indicate to the auditor that the audit should at least be yellow-flagged if not red-flagged. How can your company have accurate payroll and company records if they cannot at least be pulled together for a premium audit?
- Read the audit records request letter very carefully.
Wikimedia Commons – Ragesoss An easy way to start the records organization process is the letter the insurance carrier’s audit department will send usually 21 – 30 days before the audit appointment. Almost all policies require your carrier to allow enough time for your company to amass the records. You can ask for the audit to be delayed if the records request letter does not arrive or runs very late.
- Spreadsheet programs are crucial. The best method to undertake #1 above is to use a spreadsheet (usually Excel) program. You can use the audit letter #2 as a basis for records organization.
- Spreadsheet/audit info must be accurate. One of the pet peeves of a premium auditor is the spreadsheet and the supporting documentation does not match. Checking to make sure the info matches will save the auditor and your company a large amount of time and effort retracing the requested info.
- An office contact will save many headaches. Make sure you have one and only one person to answer any of the premium auditor’s questions and to provide any additional information. The contact must understand the records that were provided to the premium auditor; the company’s operations in full; and the company financial records.
StockUnlimited Review your premium audit bill very closely. The bill should arrive within 21 days after a premium auditor has finished your audit. If there is anything in the bill that concerns you, then you should contact the carrier (by letter). The time clock is running once the premium bill is issued. The explanation for any additional charges should be attached to the bill. Only contacting your agent may forfeit some of your rights. The policy spells out what you need to do if you thing your company has been overcharged on premiums. The policy is a contract you must follow.
- If you feel that you are in over your head or are running out of time on a premium audit bill grace period, you may want to consult a non-agent expert. There is nothing wrong with not understanding the policy, audit, or premium audit bill. They can be highly complicated in certain circumstances.
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