August 23, 2022
Audits are daunting, but we’ve got you covered with this guide!
Premium audits determine your insurance premium, and the information collected during audits is reported to rating agencies. Audits are required for Workers’ Compensation insurance and are vital to make sure all information is accurate and representative. If audits are not completed, the audit will be estimated per state statute up to 300% of your policy, and your policy can be canceled. Even if you’ve paid for the audit, your policy can remain canceled until the audit is completed.
“A physical workers’ comp audit, also known as a field audit, takes place at your business and is usually conducted within 60 days of the expiration date on your insurance policy.” (workcomplab)
Audits are more likely to be physical after the the first year. After the first year, types of audits are determined by state statutes. Normandy partners with vendors for physical audits, who will contact you by mail, email, or phone. This is the information that is needed for the physical audits:
For mail audits, insureds will complete the form provided to them and send it back by mail, fax or email along with federal 941's forms, state quarterly reports, or a detailed payroll summary for the policy period.
Audits are confusing, so here are some frequently asked questions we get about some unique circumstances.
Visit www.normandyins.com/audit-faq to get the answers to our most frequently asked questions about audits.