Disputing a Workers Comp Audit

When an employer strongly disagrees with the results of a Workers Comp premium audit, there can be an understandable tendency to ascribe base motives to the auditor and to vent one's frustrations in unmistakable terms. But this can be a mistake, giving the insurance company a basis to dismiss legitimate objections.

Here are some thoughts and strategies regarding how to effectively dispute a Workers Compensation insurance premium audit.

"Tis The Season

...For Workers Comp audits, that is. Yes, now that the holidays are over and Santa has safely returned to the North Pole, employers whose Workers Comp policies expired in late December or early January can now anticipate a visit from someone else who makes regular rounds every year--the premium auditor.

An awful lot of Workers Comp policies expire with the calendar year, and so premium auditors everywhere are starting to reach out and schedule audits for those policies. Unlike Santa's annual trip however, these visits sometimes do not spread joy and happiness across the land. Sometimes, premium audits become occasions for dispute, distress, and despair--especially if the audit generates unexpectedly large amounts of additional premium charges.

Employers need to pay their fair and appropriate WC premiums, of course. But sometimes, due to poor communications and documentation, the audit process can become a bit of a nightmare for the insured employer. The insurance industry does not always do as good a job as it might in communicating in advance just how premiums will be calculated, and business owners and managers can receive very unpleasant shocks when those audit bills arrive.

A bit of preparation can help reduce audit friction and pain. For our suggestions, take a look at our website advice for employers.