A Workers Comp Estimated Premium Audit

Question from one of our readers - We just received an estimated Workers Comp premium audit and billing. Why did this happen?

Was the premium auditor able to make an appointment to perform the payroll audit? If not, the auditor only has so many days after a Workers Comp policy expires to perform the audit. The audit is estimated in order for the billing to be produced and mailed to you. If you wish to dispute the estimated premium audit, you must still pay any undisputed premiums by the due date on the audit billing. Do not ignore the estimated audit and bill. It could lead to cancellation of your policy.

Was the premium auditor able to access all the records they need to see to be able to perform the workers comp premium audit? The auditor has the right to see any of your records. I had posted on this a few weeks ago. If the auditor is not able to review the applicable records that you have in your possession, they will have no choice but to do an estimated audit and bill.

All of the rules on Workers Comp audits and the employer dispute process must be in your policy. Most states are very picky about what the insurance carrier includes in the policy. The insurance policy may be a boring read. I recommend it before signing any policies.