Another good workers comp question I recently received!
One of the things we like to do with this blog is to answer as many questions as possible about premium related workers compensation issues. Some questions are pretty simple, some are much more complicated! While this question should have a simple answer…unfortunately it does not.
When I receive a question like this my mind automatically starts asking premium audit review questions:
- What generated the bill?
- Was it really a bill from the audit?
- Was a premium audit completed or was it generated as the result of an uncooperative or noncompliant employer?
- Did something change on the policy that caused the bill to be generated?
- How do you know the premium audit bill is wrong?
- What was the error?
- Was there really an error?
- Has it been identified?
- Has there been contact made with the insurance carrier?
- Has the mistake been brought to their attention?
- And these are just a few of the questions that must be answered! …Get the picture!
So here’s what I’ve got to say about this question. If it’s confirmed that there’s actually a premium audit mistake and the insurance company has sent you a bill based on a mistake, the first thing to do is to communicate the error with the carrier. I’d hold off paying only that part of the bill that has been identified and documented as a mistake, it’s your only leverage. But it’s also very important to go ahead and pay that part of the bill that’s right.
Most the time the first thing an employer will want to do when they get a bill they believe is wrong is to not pay it. That is not the right thing to do! Work has to be completed to verify a mistake. If it’s audit related then a premium audit review must be completed. Just because an employer doesn’t believe it’s right…doesn’t make it so!
The work has to be done. Rules about workers comp and their effects on premium issues are not always obvious. If you’re an employer who has received an unexpected premium bill from your workers comp insurance company and need help working through the problem, visit our website, contact our office and let’s talk about your problem. We may be able to help!
Hope this helps you out! Thanks!
