With every workers’ compensation policy, there will be an audit. These audits are an essential part in ensuring you are carrying the right workers’ compensation policy, either requiring you pay extra, or receiving a partial refund from your insurance carrier, establishing whether your coverage accurately reflects your risks or not.
Why is there a workers’ comp audit?
Part of this process requires that your insurance company performs employee checks, making sure your employees are properly classified, and that your rates are accurate. In the event the information you provide to your insurance carrier is not correct, your workers’ compensation policy will not provide the proper coverage, causing you to fail the audit.
It is very much in your interest to provide the right information and cooperate with the audit. If you fail to do so, you could be prosecuted for insurance fraud. So it is important to ensure you are providing updated information, allowing their insurers to visit their facilities. To fully keep you protected, it is also important to avoid underreporting payroll or incorrect job descriptions, as well as ensuring you are employing contractors, informing the insurers when doing so.
Passing the audit
For the best results, it is critical to always provide up-to-date, as well as only accurate information to your insurance carrier. Simply by maintaining open communication, you can rest assured that you will have a successful partnership, providing the appropriate coverage for your employees.
For more information, or help with your workers’ compensation or insurance needs, contact Brazelton Insurance Group today!