Four Best Practices For Your Upcoming Workers' Compensation Audit

Four Best Practices For Your Upcoming workers' compensation?Audit:

1. Be Prepared: Your insurance audit occurs at the same time each year
2. Take your insurance audit seriously
3. Respond to all audit requests promptly
4. Keep your information accurate and up to date

When it comes to your workers' compensation audit and your business, there are a few important things you need to know to make sure you're compliant and, most importantly, that you don't risk losing your coverage.??

There are many implications in a workers' compensation?audit and keeping the process up to date is important for many reasons. This is why evading your insurance check can lead to dangerous territory.??

Audits are an unusual situation for workers' compensation in that insurers are required by law and the National Council of Indemnity Insurance (NCCI) to do so.?

At the beginning of the contract, you estimate what your payroll will be for the year, then at the end of the contract period you do a workers' compensation? audit (physical, paperwork, phone, etc.) Accurate payroll for the duration of the contract. regulatory policy. Most workers' compensation insurance company audits are from 5 years ago, but some audits are as old as 3 years.??

This workers' compensation?audit process may produce an additional premium due or a refundable premium, depending on your final paycheck. All audits can be challenged, but this must be done within the individual company's audit deadline and must be documented.?

Remember that insurance companies are subject to a rigorous process when submitting this information and it is possible to lose their license to do insurance business in a particular state if certain requirements are not met. Therefore, they are constantly looking for the necessary workers' compensation?audit data.?

The legal system allows them to refer you to collections of outstanding premiums, and they can even sue for that premium under NCCI laws and guidelines. Upon completion of the workers' compensation?audit, the insurance company must submit all classifications (class codes), relevant payroll, and NAIC/SIC information to the NCCI rating agency within a certain timeframe. This means that all your test information is time sensitive.??

The insurer must also provide this same policy information to the NCCI during the policy term, along with loss data (the unit's statistical report), each quarter while the workers' compensation policy is subject to change. action is underway. The unit statistics report must be reviewed and signed by the contract owner to verify that the information is correct.??

This is the information provided to the policyholder's company number Change of Experience Debit or Credit (EMR) on their Workers' Compensation Policy Change Spreadsheet. This same information will ultimately determine the base compensation for NCCI workers used by insurance companies.?

If your policy check fails to comply, the insurance company may terminate your policy. When this is done, they will send a notification to the NCCI. The NCCI is notified by all insurance companies when a policy is issued, renewed, or canceled.??

So, if you are terminated for non-compliance and attempt to transfer your coverage to another insurer, NCCI will immediately notify that insurer to cancel your policy. It was a no-win situation.?

Ensuring that you take your audits seriously, respond to requests promptly, and keep your information accurate and up to date will help protect you and your business from cancellation and harm. latent. Having Dickerson by your side can help prevent workers' compensation?audit disasters.??