If you're a business owner, you're probably familiar with the process of having your workers' compensation insurance audited. This audit is conducted by the insurance company to ensure that you are paying the correct premium based on your actual payroll and employee classifications. However, there are times when the audit results may not accurately reflect your business operations, leading to higher premiums than necessary.
Disputing your workers' compensation premium audit results can be a daunting task, but it's essential to ensure that you are not overpaying for insurance coverage. This guide we will discuss the steps you can take to dispute your audit results and potentially lower your premiums.
1. Review the Audit Report
A. The first step in disputing your premium audit results is to carefully review the audit report provided by the insurance company. Pay close attention to the payroll figures, employee classifications, and any discrepancies that you may have identified. It's crucial to understand the basis for the audit results before moving forward with your dispute. Remember that the audit results are a direct reflection of answers you provided to questions, and documentation that your insurance company requested from you.
B. Does your audit seem to be unusually high or payroll figures look inflated? This may be the result of your inaction, or incomplete audit data.
If you did not comply with the request to complete the audit, then your insurance company has to estimate the figures for you. Their estimates can legally be 200% or more of your typical premium.
If you do not furnish all documentation that is requested or you omit details, this can also lead to an estimated audit being the result. Without complete payroll information or detailed answers to questions, an auditor is unable to provide a final audit result and is then forced to default to the estimated audit results The only way to dispute the results of an estimated audit is by completing the audit.
2. Gather Documentation
To support your dispute, gather all relevant documentation that can help prove your case. This may include payroll records, employee job descriptions, contracts with subcontractors, and any other relevant documents that can substantiate your argument. Make sure to organize this documentation in a clear and concise manner for easy reference during the dispute process. Oftentimes, if you are not able to support your dispute with verifiable documentation, it will not result in any change.
3. Contact Your Insurance Company
Reach out to your insurance company to discuss the discrepancies in the audit results. Provide them with the documentation you have gathered and clearly outline your reasons for disputing the results. It's essential to maintain open communication with the insurance company throughout the dispute process to increase the likelihood of a favorable resolution.
4. Seek Professional Help
If you're facing challenges in disputing your audit, seek outside help. Auditure and companies in the audit industry are best equipped to review your audit. After all, the companies that audit policies for the insurance companies are going to know what to look for. Why not leverage that knowledge for yourself? Auditure will review your audit for free. If we find that there is a dispute to be had, we can help you dispute the results for a flat fee (in most cases. If your dispute is a more complex hourly rates may apply.)
Avoidance is not going to make the matter disappear neither is non-payment. Don't avoid completing your audit, or paying your earned premium. And if you feel that the audit is wrong contact us for your free audit review