The Workers Comp premium audit usually occurs within 60 days after policy expiration. The audit usually involves an in-person physical audit by a premium auditor that works for the carrier. Audits are subject to high error rates. The employer can initiate a premium dispute if they disagree with their premium audit result.
The process usually involves these steps:
The audit process remains one of the reasons that employers contact us the most often. Many times, the employers do not understand the process.
Carriers and agents sometimes do not entirely explain the process to an employer unless the insured client has disputed the audit.
One of the most disputed items is that after the insured receives their premium audit bill, another policy period has already begun with the same worker’s comp insurance carrier.
The employer will pay a stiff fee known as a short rate penalty if they jump to another carrier during the policy period.
Many times, the insurance carrier will forward their overdue bill to an attorney for collection through the courts even when a valid dispute has been launched by the insured employer.
The premium audit process is one of the most controversial topics with employers, carriers, and premium auditors.
Workers Comp Premium Audit Process Changed Forever Oh no – another pandemic effect article. Yes, we have seen too many over the last 36 months.
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Will Today’s Hybrid Audits Ever Return to Physical Premium Audits? First – let us define the three types of audits in this article – Short
Newsletter Reader Asks What Is the Difference Between a Premium Audit Statement, Premium Audit Bill, and Premium Audit Report? A premium audit report, statement, or
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