The premium you pay for your workers comp insurance policy is based on your payroll, operations and location. Initially, when you start a new workers compensation policy, you will estimate what your payroll is going to be for that year. Then, at the end of the policy period, you will be required to complete a premium audit to verify the actual payroll. Fortunately, these audits are usually routine and can be finished quickly. Finally, the completed audit showing your actual payroll for the year will be submitted back to the insurance company. Consequently, the insurance company uses that audit to determine if you paid the appropriate amount for your work comp insurance.
How do insurance companies typically conduct a work comp audit?
Typically, you will have a few options available for completing your audit. Your options may depend on the size of your business, the industry you work in and your location. Here are some of the options available to complete a work comp audit.
- Mail Audit. You will receive an audit form to complete and return to the insurance company by mail.
- Telephone Audit. You will complete and return a form to the company by mail, email or fax. Once the company receives the form, a representative will follow up with you by phone.
- Remote Physical Audit. You will need to send payroll records for your business to the insurance company. Once received, a representative will call to discuss the payroll information and the business operations. Typically, you will be able to use a Quarterly Federal Tax Return (941), state unemployment forms and payroll journals for supporting documentation.
- On Site Physical Audit. An auditor from the insurance company will actually schedule an appointment and visit your business in person to review payroll and operations information.
What if I disagree with my work comp audit results?
If you do not agree with the results of your final premium audit, you will need to contact your insurance agent and request a review of the audit. Let the agent or representative know what you are disputing and be ready to provide supporting documentation you have.
Why should I work with an agent?
In conclusion, having an independent insurance agent in your corner is a huge benefit. This way, if you have any questions or need to dispute an audit, you have someone to help you with the process. Furthermore, an independent agent represents you as the business owner, not the insurance company. Therefore, the agent helps make sure that you get treated fairly. To complete a review of your business insurance, contact RCI Insurance Group today and talk to one of our experts. Since you are paying for insurance coverage, you want to make sure you have the protection you need!