Your firm will be asked to complete a workers compensation audit at the end of the policy period. This is to provide a true picture of your firm’s employees and subconsultants for the past policy period.
When your firm receives your workers’ compensation renewal policy, it will have an estimated premium for the upcoming policy period. For example, your firm’s policy period may be April 1, 2024, to April 1, 2025. The estimated premium on the policy will look like the following:
Total Estimated Annual Premium: $1,397
The reason it is estimated is because your firm and the insurance company will not know what the salaries for the upcoming year will be, things are always changing.
This is why at the end of the policy period, April 1, 2025, there is a request for audit paperwork. With the audit your firm will provide payroll records and certificates of insurance for your subconsultants, and any additional records needed by your insurance company. Then there will be either a return premium or an additional premium requested from the insurance company based on the completed audit.
If your firm does not complete the workers compensation audit paperwork and estimated audit will be issued by the insurance company and typically will be an increase from the estimate annual premium.
If the workers’ compensation audit paperwork does not appear to be accurate, then your firm can dispute the audit with the insurance company. The insurance company may request additional documentation for the dispute. Once the dispute is complete, the insurance company will provide the revised workers compensation audit and invoice for premium due or a refund.
If you have any questions about your firm’s workers compensation audit please call, or email, your Professional Underwriter agent for assistance.