The Workers Compensation premium audit process usually begins within 30 days after policy expiry. The premium auditor will usually contact your company after policy expiry to set up a premium audit appointment. The premium audit letter you receive will have listed the specific items to be reviewed by the auditor.
The premium audit is not the same as a tax audit but should be treated as such. Organization is the key to any successful audit. If your records are disorganized, this will reflect negatively on your company overall.
Using a spreadsheet app such as Excel or Google Sheets will help you organize your documents for the auditor. Auditors love neatness during the workers compensation premium audit process.
After your premium audit is complete, you will receive a premium audit results along with a premium audit billing.
If you do not understand or have questions on the audit results and the billing, you have the right to have all of your questions answered and to even to initiate a premium audit dispute if you do not agree with the results.
One important thing to remember is to not dispute an audit because your company wishes to delay the payment or if you have no basis other than the premium audit bill looks too high. You can easily destroy the relationship with your carrier and agent by initiating a groundless dispute.
All of the procedures and rules for a premium audit or premium audit dispute are spelled out in your policy.
Your company can easily see the workers compensation premium audit process rules by reading that section in your policy. The policy is an agreement between your company and your carrier.
Time is of the essence in forwarding your dispute to the insurance carrier. If you do not agree with your premium audit bill, the worst mistake is to set on the bill and do nothing.