February 12, 2021
At Normandy Insurance, we pride ourselves on thoroughly preparing and closing claims in a timely manner. However, to maintain these claims, insurance companies like us need to perform frequent workers’ compensation audits.
Audits are a regular yet essential service to gauge a company’s payroll and determine if said company is receiving the correct premium. If performed accurately, an audit determines the level of care, lost time payment, and more for the company’s employees. This can ensure the company receives the right coverage and that their premium won’t burn a hole in their pockets.
Let’s discuss the best ways to prepare your clients for a workers’ comp audit so they can get the premium they deserve!
The most significant part of a workers’ compensation audit is a company’s payroll. Asking for your client’s payroll is only the first step. Be thorough: ask your clients if their employees performed any overtime during the policy period. Every bit of information helps determine the best premium for your client. Remember, the type of benefits employees received in the year contributes toward the overall payroll.
Besides payroll, looking into a company’s tax returns and other documentation provides a clearer picture of their finances. Falsely reporting any payroll or benefits leads to the wrong premiums assigned and, as discussed later, can lead to insurance fraud. Asking your client for thorough information on their payroll only benefits them in the long run.
Immersing yourself in the workings of your clients’ companies helps them figure out the best practices to keep their employees safe. Audits are performed in multiple ways: in person, by phone, by physical mail, or through email. Though performing an audit in person might be difficult due to the ongoing COVID-19 pandemic, doing so provides a better view of a company’s working conditions. You can’t see an obvious safety hazard from an email.
Working directly with your clients helps build your rapport with them and educate them on reducing workplace injuries. The more data you collect as an insurance agent, the better you can steer the company in the right direction. Asking clients to track and record onsite issues can pinpoint problem areas and even prevent future workers’ compensation claims.
The more you talk to your client, the better you can perform your audit.
Different positions come with various risks. Discussing the ins-and-outs of their company and each role’s purpose determines each employee’s safety level. Keeping multiple communication channels open and different ways to report information helps the claims process and allows you to perform an accurate and swift audit.
At Normandy Insurance, we provide a direct connection between our agents and their clients. This personal touch may not be important to our competitors, but it allows us to thoroughly process their claims and provide the best coverage and premiums through audits. Communication is our specialty.
The most important thing to tell your client is straightforward: don’t lie. Lying on an audit will come back to haunt you in multiple ways, each leading to the same conclusion: insurance fraud. Providing the wrong information, whether through an inaccurate payroll, incorrect job descriptions, false tax returns, and so on, leads to erroneous classifications. If caught, your client could be prosecuted for the errors.
Workers’ compensation looks scary in the eyes of both the employer and their employees. Fear leads to claims not being made when they should or false claims. Educating the client and their employees on workers’ comp and the benefit of accurate reporting assuages their fears and, in turn, leads to a precise audit.
Preparing your clients for a workers’ comp audit might be stressful for them, but an accurate report provides them the best premium and coverage they deserve. The key is to listen to your client’s concerns while asking detailed questions. Any loop or strand left behind in the audit process hurts the employer and their employees. This kind of relationship is provided by many of the agents at Normandy Insurance. If you have what it takes to build a good rapport with your clients, join our team today: info.normandyins.com/learn-more/