What’s the number one mistake employers make on workers compensation audits? Not being prepared!
If you have a workers comp policy, the audit is going to happen. It just does. Whether or not you want it, it’s coming. We receive many calls from new clients after the audit process has deteriorated to a point of name calling and accusations! The clients account may be on the verge of being turned over to a collection agency or removed from the insurance companies audit department and placed in the hands of their legal department. Or their audit has been reported as Non-Compliant. Regardless the situation, once the audit process has deteriorated there is no easy fix. As a matter of fact it can be quite difficult and costly to repair…even if there are legitimate mistakes found in the audit!
We believe most audit errors begin either when a workers compensation policy is first purchased or set up or when a policy renews without review. Poor communication between the agent and their client, misunderstandings or making assumptions at these points cause many problems. Poor communication from the client with their agent or insurance company after changes in their operations have occurred also cause many problems. Frankly, problems that should not happen.
So here’s a little free advice about workers compensation audits….BE PREPARED! Take the time and prepare for an upcoming audit. Have the information the auditor has asked for ready and be available to discuss your company operations with the auditor and answer questions about the work processes and materials you use in your business. Have your payroll records and certificates of insurance ready to turn over. In general, be prepared for the audit! Then, after the audit is complete and you’ve received the results, contact an independent outside consulting firm to review the audit for you!
Lesson Learned: Prepare for a workers compensation audit! Do what’s right. Provide the correct information on a timely basis. And learn about the process!
Thanks!
