5 Steps to Get Through Your Workers Comp Audit Berry Insurance 5 Steps to Get Through Your Workers Comp Audit

As long as you don’t have to spend time finding documents and information, you’ll be able to provide everything you need so the auditor can work efficiently. Maintaining good records will make this process much easier. The audit form is mailed by your insurance company within 60 days after the expiration of your insurance policy. This form should be completed and returned to the insurance company as soon as possible. The form usually shows the classification codes as shown on your policy and asks you to verify the actual payroll exposures for each class.

The majority of states and the National Council on Compensation Insurance require insurance providers to audit most workers’ compensation policies. Once your workers’ compensation policy term expires, your insurance provider will notify you of an audit within 60 days. In most cases, your insurer will notify you via email or phone. Remember, the insurance company wants to ensure their estimates match your actual payroll, which is why they’re requesting all these documents. If not, you will likely be charged an extra insurance premium for the subcontractors that don’t have coverage.

During an audit, the following information will be reviewed:

However, by the end of the policy period, your company may look different from what you expected when you gave your estimates. Since it’s normal for businesses to add and lose employees, your insurance carrier needs to make sure you have the right level of coverage for your business. Each year, your insurer will perform a workers’ comp insurance audit to confirm that you paid for the appropriate workers’ comp coverage over the previous year. If the records don’t match, the price of the workers’ comp insurance is adjusted for the policy year. Make sure that this primary contact person is familiar with and can easily provide the auditor with all the employees’ specific job duties by department, as well as payroll records.

We also encourage “pay-as-you-go” plans through our Connected Payroll model. If you’re seeking worker’s comp, we’ll connect you with insurance carriers who can create a pay-as-you-go plan tailored to your needs so you can avoid overpaying for insurance. If auditors pick up an uninsured subcontractor, your business is charged as if they’re a direct employee. Have all the information the auditor requested organized and ready for use. Complete and accurate records kept well organized will make the audit process easier. The auditor can quickly find what they need and will require less questions and/or clarifications.

Step 4: Schedule/complete your audit appointment

Tell us yours and we’ll help lower the cost of workers comp coverage. The audit also assesses whether any subcontractors you hired had their own coverage in place. If not, policyholders may be charged based on payments to uninsured subcontractors as well. When you are preparing for an audit, go back further than your current policy year’s documents. Categorizing your employees correctly is what’s most important to ensure a smooth audit and not be hit by surprises. Knowing how your employees have been categorized in the past can help you make sure they’re categorized correctly in future audits.

The 60-day period for initiating your Workers Comp Audit continues to run even though SAIF may be working with you in an attempt to resolve the disagreement. Your final premium audit billing letter will contain instructions on how you can appeal the audit. In June 2014, a truck driver from Georgia drove 800 miles from his home to his Delaware workplace. Supporting Napa Businesses Affected by the Tubbs Fire The Tubbs fire in Napa Valley and Santa Rosa burned down 8,400 structures – both homes and businesses – and …