Workers’ Compensation Audit

Most workers’ compensation policies are subject to an audit. The premium you pay at the beginning of your policy period is a provisional amount. It is an estimate based on your projected payrolls for the coming year.
After your policy has expired, your insurer conducts an audit to determine your actual payrolls for that year. Your insurer then adjusts your premium. If your actual payroll exceeds your estimated payroll, you may be billed an additional premium. If your actual payroll is less than your projected payroll, you may receive a return premium.

When you purchase workers’ compensation coverage, you are contractually obligated to comply with the audit and inspection provisions in the policy. If your insurer asks to visit your facility or requests updated payroll information, you must submit to its demands.

Complying with your insurer’s request for information is not your only obligation as a policyholder. You must also provide accurate data.

Once an audit has been completed, your insurer will send you a report. Ideally, the payrolls shown in the report will not differ substantially from the estimated payrolls listed on your policy.

Unfortunately, this isn’t always the case.

The A&F Financial team and partners can work hand to hand with your business with a mission to have your payroll processed and paid in time, accurate accounting services and a Workers’ Compensation Insurance policy that allows you to make premium payments each time you run payroll, which will spread out your workers’ compensation insurance liability throughout the year instead of a traditional workers’ comp plans that require large lump sum payments to cover the estimate cost of your liability.

So, when it’s time for Workers’ Compensation Audit, you are sure that here at A&F Financial, you will have all information needed to comply with your insurer’s request.

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