A workers’ compensation premium audit is typically conducted at the end of each policy period to verify payroll, class codes, and subcontractor exposure. Insurance companies request this annual review via phone, mail, or in-person by an assigned auditor.
Its purpose is to ensure that the payroll and class codes accurately reflect the actual payroll and scope of work during the policy period. Additionally, audits confirm that subcontractors have their own coverage. Failure to provide coverage for subcontractors may result in charges for uninsured payments on your policy during the audit.
– Conducted at your business premises within 60 days post-policy expiration.
– Auditor notifies you via mail or phone and schedules an appointment.
– Tight deadlines: Most insurance carriers require completion within 30 days.
– Failure to meet deadline may lead to a delinquent status and inflated audit bills.
– Completed by mail, with the insurance company sending an audit form within 60 days post-policy expiration.
– Form depicts classification codes from your policy and seeks verification of actual payroll exposures for each class.
– Forms may be confusing for first-time users and may request additional tax reports or related documents.
– It’s advisable to contact the insurance company or agent for assistance to understand the implications of the data provided.
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