How Work Comp Premium Audits Impact Premium & What to Expect During the Process

Non-compliance of an audit can heavily impact a policy's premium and even result in hefty non-compliance charges. Be sure you and your insureds fully understand the importance of a workers compensation premium audit and what to expect during the audit process.

The Purpose of a Worker’s Compensation Audit:

It is an annual review of actual payroll and tax records performed at the request of an insurance company.

The audit ultimately determines the final cost of any workers’ comp policy after the policy period ends.

Think of it as a check-up to make sure the carrier has the most up-to-date information on the company and employees.

The Audit Timeline:

Before the end of the policy term, the insured will receive a premium audit information request directly from the insurance company.
This request will detail all information needed to be provided to verify payroll and class codes.
Insured has 30 days to comply with the request for information
A phone or in-person interview may be required to verify information submitted.
Final audits can take 30-90 days for the carrier to process.
If additional premium due, most carriers will offer a payment plan if needed.

Have more questions about audits? We'll respond to your comments below!

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Learn More About CID:

CID Insurance Programs is an E&S Wholesaler specializing in commercial insurance products designed for independent and captive insurance brokers’ business client’s needs.

Our wholesale business insurance products encompass a broad range of preferred to manageable hard-to-place risks. CID Insurance has developed strong relationships with both admitted and non-admitted markets. Our commitment is to make the quote and bind process fast and easy for our retail insurance brokers.