We received a call today from a new client. They opened their mail and guess what was inside? Yep! An audit bill from their workers compensation insurance company for a large amount of additional premium. So how could this happen…that a bill just shows up for a large additional premium due…with no explanation? Well please read on…
It’s not uncommon that communication between an insurance company and their insured lacks in what you might call common sense. You should kind of think about an insurance company as a large machine, sitting up there somewhere, churning away…information goes in one end and bills come out the other! Ok…so maybe it’s not quite that industrial. But sometimes it seems like that!
In todays world of advanced communication you would think that a descriptive letter or document might just accompany a bill asking for more money. In fact after an audit is completed the insured should receive at minimum an audit statement which in some form or other describes the outcome of the audit. And in fact most companies are very good at providing this document…usually before they send a bill.
But here’s the problem…the audit statements most companies send are not very user friendly…not very easy for the consumer to understand. Most people who receive these documents don’t really know what they are, what the insurance company is trying to tell them and why they received them.
So a surprise bill? Probably not. But a situation that sometimes seems shrouded in the clouds…a situation that could be improved…you bet!