A workers’ comp audit may sound scary, but it doesn’t have to be! NEXT's audit team is always here to advocate for you if you need help.
A workers’ comp audit is simply a check-in by your insurance carrier to make sure everything is up to date and correct on your policy. The carrier wants to ensure that all employees’ class codes and payroll amounts match up to the premium you’re paying for your policy term.
These audits are important because they ensure that you and your carrier are on the same page for the policy term.
Audits happen once a policy is ended (cancelled or expired), although here at NEXT, audit specialists may do proactive mid-term reviews for policies that aren’t running at the pace they should.
There are three possible outcomes of an audit:
- no change,
- you owe money, or
- the carrier owes you money.
The negative consequences of overpayment are obvious—you spent more money than you needed to!
But underpaying can have negative consequences, too: it can mean having to pay a large lump sum at the end of your policy term. Our goal is to work with you and the carrier to prevent this scenario.