Premium Audit
A review after the policy year to compare estimated payroll or revenue with the actual figures. Premium may go up or down.
What it means for your firm
Workers compensation premium is usually based on estimated payroll by job class and state. After the year ends, the carrier checks the real numbers.
If payroll grew, the firm may owe more. If it shrank, the firm may get money back, though usually not below the policy's minimum premium.
General definition for education only. It is not an interpretation of any policy or contract, and it is not legal advice. The wording of your own policy and contract controls. Policies and definitions vary by insurance company.
Tell Us About Your Firm. We’ll Tell You What We See.
Starting out or renewing, with a policy in hand or not. If something is worth discussing, we’ll call. If not, we’ll say so.