HELP!!! Quick, please :-)

ScorpioHR

I have an audit today with our old wc company-They dropped us for a "poor loss report"-It was one employee-He has 3 previous wc claims at other jobs....What I am not getting, is why are they coming in to audit when they no longer cover us?And more importantly, can anyone tell me what exactly I am supposed to give this lady? Our wc insurance was thru our payroll company. Can they not get whatever info they need from them??? Do I even have to see this woman????I am lost-Any help would be greatly appreciated....

Down_the_Middle

At who's request do you think it's coming from? Some W/C carriers will do a post coverage audit helping to transition you to your next carrier; plus they like to re-look at current claims 2/c if they can pass them on. Your contract with them should mention someting about the right to conduct an audit..... In the absence of finding some language in the contract with the old carrier, I'd meet with this person and see what is needed. This is not uncommon, particularly since they've dumped you for a high loss ratio.

ScorpioHR

Yikes- "high loss" it was ONE ee :-( Oh well, I shall meet with her and see what she wants-Thank you for the reply!

Balloonman1

Actaully most companies audit, they are going to be looking at payroll numbers to compare it to those estimates used for determining payroll. From there you could either get money back if your payroll and exposure was lower, or if it was higher you will get billed additional premium. This is pretty common, don't freak out.
My $0.02 worth,
DJ The Balloonman

ScorpioHR

Thanks! I checked what we estimated our payroll to be and we will come in lower-I thought that might be the deal...Maybe she will not make it today....bad storm warnings in my part of the state!

jennifer jo

Scorpio, one thing you might do is meet with the rep, find out what info she wants and to buy yourself time, tell her that you'll pull the information together and route it to her within the next few days.

marc

Agree with Balloonman, this is not a big deal. The other area they always check with us has to do with contractors carrying their own WC insurance. Our carrier requires us to provide them with a copy of WC coverage for these vendors. If no certificate is provided, they assume the subcontractor has no coverage and they charge us an additional amount related to the dollars we paid the subcontractor.

The part of this that is a big deal, at least in Nevada, has to do with the premium increase you will likely get because your carrier fired you. In our case, the premiums went way, way up. We paid the higher amount for 18 months while looking for a carrier to take us out of the high risk pool. We finally got out and are back to the normal premiums. Get all over your agent that deals with WC insurance and make them earn their money. You do not want to stay in the high risk pool.

ScorpioHR

[font size="1" color="#FF0000"]LAST EDITED ON 08-02-04 AT 05:55PM (CST)[/font][br][br]Thank you for your good advise :-) Audit came and went and I am still standing (so is the audit lady!!) I had my UCT-6 and wc reports ready for her, lined up by month-I gave her a desk, a calculator and some coffee (flavored, the good stuff!) She was very impressed! Apparently, they were looking for subs and 1099's that they could go after-I had all the insurance certifications required for people I pay on that basis-That was good too! Anyway-I got through it-Thanks again for the helpxclap

E Wart

I am assuming this audit is for premium purposes. When a quote is made, it is based on the salary projections you provide the carrier. However, they do have the right to come in and look at your payroll records to determine exactly what you owe them i premium. As said before, you may owe money, you may get it back.
We have the info ready for them so that they spend about 1 hour checking to make sure our numbers are correct and leave. I have never had someone ask to see anything about uor workers' comp files, only the payroll info.
By the way, make sure you understand exactly what wages should be included and show the auditor on the payroll register how to delete those that should not be. (Such as severance isn't included.)
This is no big thing. They are there to work with you. good luck.
E Wart