Every company carrying workers comp insurance for their employees must be ready for an audit prior to receiving the cost of their premium. The insuring company will request completed workers compensation audit worksheets. These sheets provide a snapshot of the information they are going to use to determine the costs of coverage for your company. A typical worksheet could include the following:
- The contact name for the client
- The name, address and phone number of the company insured
- A list of all company locations
- Names of all executive officers, partners, owners, or LLC members
- Names and positions of all employees on the payroll
- Company classification codes
- Notes detailing or informing the business operations
- Interview notes conducted with the company insured
Sometimes, your insurance provider will over-insure your company and you find yourself facing a settlement bill at the end of your policy contract. A premium audit helps determine the initial cost of your insurance coverage, and if circumstances change through the policy term, you may be entitled to a refund or owe additional funds at the end of the year.
Waiting for the results of workers compensation audit worksheets can be a stressful time for companies, but they are designed to help with fair pricing for your policy. Contact your broker for more information on what they require during an audit.