Understanding the workers compensation audit for design professionals

When your firm obtains a workers compensation policy it is based on estimated salaries and job descriptions at that time.  The policy, when it starts and at future renewals, is an estimate and the premium is considered a deposit.  The reason this is set up this way is because the policy is an auditable policy because of the changes that happen in a policy year with your firm.

After the workers compensation policy period has ended your firm will receive audit paperwork or an email for an audit to complete online for the insurance company.  The insurance company will ask for actual salaries and job descriptions from the past policy period and backup data such as quarterly 941’s for the audit.  Keep in mind this is for the policy period time period not necessarily the fiscal year.

Once the insurance company has all of the requested information they will complete the workers compensation audit.  Then your firm will receive the completed audit with the final numbers for that policy period.  This may be a return premium for your firm or it may be an additional premium from the initial deposit paid on the renewal.  If you do not agree with the audit this can be disputed with the insurance company to make sure the salaries are accurate.

There are a few items to keep in mind when you are completing the audit for the insurance company.  Be sure you provide the most accurate information possible, this way your firm will not have to dispute an audit.  Also, the insurance company will ask for certificates of insurance showing proof of workers compensation for your sub consultants.  Your firm can be charged for a sub consultant if you do not provide the certificate of insurance.  Lastly, you are not required to complete the audit but do keep in mind that the insurance company will do an estimate, which is typically an increase in premium.  Please call or email questions to your PUI Agent on the workers compensation audit, we are here to help.

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