How To Review Your Own Workers Comp Audit - Checklist for Accuracy

When it comes to workers compensation, one of the thorns in every business owners side is completing the workers comp audit. A necessary step in arriving at a final cost for your workers compensation insurance. But you have to remember, the auditor is not on your side. They work for the insurance company, not you, and their job is to make sure all premium producing charges are accounted for on your policy. So what can an owner do to make sure they're not being overcharged for their workers comp premium? A simple review of your workers compensation audit is the answer.

Do you have to hire someone to review your audit? No. Common sense will take you a long way in verifying the accuracy of your audit. Are there times when you will need help? Yes. Sometimes audits are very complicated and the proof is in the details!

How can you know if there is a problem with your workers comp audit? To me it usually starts with a business owner who has a bad feeling or a gut feeling that their audit is wrong. I've found that most business owners have a good handle on the expenses driving their business and they know when something just doesn't feel right. Sure there are those deep hidden mistakes that go on for years undiscovered, but the recovery audits I've been most successful seem to come from a business owner who questions the accuracy of the audit performed.

Here's a quick check list you can use that may indicate you have a problem:

_______ You received an audit billing much higher than you expected;
_______ You did not receive completed audit worksheets from the auditor;
_______ You were charged for work done by a subcontractor;
_______ Payroll used for your audit was different than supplied;
_______ Credits were removed from your policy at audit.

These are just a few indicators you should use. For a more complete list go to this page: Problem Audit Indicators

I'll have more on how you can check your own audit in future blogs! Thanks!