Understand the Premium Audit Process | Workers' Compensation скачать в хорошем качестве

Understand the Premium Audit Process | Workers' Compensation

Before the end of your policy term, you'll be asked to complete a workers' compensation audit. Failure to do so in a timely matter can result in policy cancellation and/or a substantial increase in premium. Running a small business successfully requires making business operation adjustments as needed. Over the course of a year, a lot can happen. 1. Did you expand? 2. Hire new employees? 3. Train your old ones to perform different tasks? 4. Did you change entity structure? 5. Did you change ownership? 6. Or maybe you scaled back altogether and reduced your staff. These types of changes will impact the amount of Workers’ Comp premium you pay in any annual policy period. Whatever decisions you make, it’s very important to let your insurance broker know so they can make the appropriate changes to your Workers’ Comp policy, so your insurance premium reflects your actual business needs. The failure to make these changes will be caught on the annual audit performed by the insurance company at the end of each policy period as mandated for Workers’ Comp by state regulation. In simple terms, an audit is a check-up to make sure we have the most up-to-date information on you and your employees, to help make sure you have the right amount of business insurance coverage. However, it is better to communicate as you go so there is no increased premium surprises all at once. Before the end of your policy term, you’ll receive a premium audit information request directly from the insurance company. It is important to respond in a timely manner to this request as non-compliance will cause the renewal policy to go into cancellation. In addition, the insurance company will estimate the final audit with all payroll in the highest rated class code which will cause a substantial increase in premium. Your carrier has tools and simple guides to help prepare you in making the process simple and easy. They will send you what needs to be provided by mail or electronically and you will typically be given a 30-day period to comply with the necessary requirements. Prior to completing the audit, CID recommends gathering payroll summaries for the policy period, payroll tax reports, and the IRS Form 941 for the last four filed quarters. With the proper preparation of documents and information, it should take less than 30 minutes to complete. We appreciate your business and hope this will help you along the way during the audit process. Visit our website: www.cidinsurance.com -- Check out our other previously recorded webinars, they are all uploaded here on our YouTube channel. You can also register to watch one of our next ones live. Get your questions answered by the experts: https://www.cidinsurance.com/resource... Get everything else you need on website here: https://www.cidinsurance.com/ CID Insurance Programs is a Wholesale Brokerage specializing in commercial insurance products designed for the business clients of independent and captive insurance brokers. Our wholesale insurance products encompass a broad range of preferred risks to manageable hard-to-place risks. We have gained success and recognition in helping insurance brokers build their commercial book of business.