We want the Premium Audit experience to be pleasant for you and value-added for your company. In fact, we hope we can help you lower your premiums. Always feel free to ask questions if you don't understand something.
Put simply, a workers’ compensation premium audit is a review of your records and operations to ensure that your coverage information is accurate. The goal is to assess and collect a premium that accurately represents your risk exposure.
Your premium is calculated based on the projected payroll information we receive from you at the inception of your policy. To make sure that your premium is priced accurately and fairly, we will compare your payroll estimates to your actual payroll at the end of your term. Each policy term may have a physical audit or a mail audit, based on the size of the policy, the nature of your business and other circumstances.
An audit is usually performed shortly after your policy expiration, but we can also perform it earlier to verify the accuracy of your estimated exposures.
Audits are also conducted after a policy cancellation, to determine the final earned premium for the shortened policy period.
Audits are typically performed on an annual basis, but can be performed at anytime during or after your policy period.
It may be sufficient to conduct a mail audit. This means that that we'll mail the necessary forms to your company along with instructions on how to complete them. You'll supply information regarding your payroll, subcontractors, etc. Maintaining the proper records will help you easily complete the mail audit.
If necessary, a premium auditor will contact you to make an appointment for a physical (on-site) audit. We will examine your records to determine the correct exposure, or risk. This may include: payroll records, journals, tax reports, individual earnings cards, cash disbursements, etc. The various operations of your company may be observed to help better categorized risk classes.
We understand that construction, farming and large businesses may have unique payroll situations. If you have this type of company, our Field Auditor will conduct a Service Audit within the first 90 days of your policy period. They will check to be sure that the correct classification is assign and review your payroll reporting procedures.
Advanced preparations will make sure your audit is completed smoothly.
To assist you in gathering the necessary records for your premium audit, refer to this checklist. Make sure that records are available from the previous calendar year. These records include: