The Connection Magazine The Connection Magazine Spring 2018 | Page 29

It Says On The Letter Of Non-Renewal That My Policy
Will Be Terminated On The Effective Date Because The
Premium Was Not Received. Can I Still Make A Payment?
Payments will be accepted online right up to the effective
date of the renewal policy. The information to make the
payment is found at the bottom of the quote originally
sent to you. Payments sent by mail will be accepted by the
postage date of the mailing.
from coverage and has employees, please get something in
writing from them that confirms that they have employees.
Be sure that’s available along with their workers’ comp
certificate for the audit.
Also make sure the certificate you provide has dates that
cover the payments made to the subcontractor and has a
valid policy number under the space provided. Notations
like TBO, TBD, or UNA are not acceptable as they indicate
that the subcontractor has applied for coverage but may
have been declined for insurance after an underwriting
review.
Can I Get A Copy Of The Auditor’s Worksheets?
If you are the named insured or the named insured’s
accountant, we would be happy to provide copies of the
audit report to you. To release copies of the audit report to
anyone else, we need authorization from one of the officers,
owners, members, or partners to send it out (an email
authorizing the release will suffice).
Premium Audit
Why Do I Need An Audit?
Keep in mind the audit experience might be better for
you than you think! Every year, your workers’ comp policy
premium is based on your best guess of what the next
12 months of your payroll will look like or on the previous
year’s audit results. As your business grows (or slows),
these numbers change. The audit is done after the policy
has expired to make sure you only pay for the payroll you
actually paid during the policy period.
While other elements influence your audit (for example,
uninsured subcontractors), if you’ve overestimated, you
may be due a refund. If you’ve underestimated, we can
talk to you about changing the estimates going forward to
help avoid getting a large additional premium bill at your
next audit.
Audits also help us maintain a more accurate “reserve”
of funds based on class codes and payroll to address
claims that may be presented.
The deciding factor may be that the audit is a condition
of your policy. If you don’t do the audit, you could be
cancelled, billed for additional premium, or both. If you
have questions about the process, visit our website and
click on the Services tab, then Premium Audit/Technical
Information, or give us a call at 800-876-2765.
What Types Of Documentation Do I Need For An Audit
Visit Or Phone Call?
Payroll or individual earnings reports and
unemployment/FICA reports or journals should be readily
available. Job cost records, financial statements, general
ledgers, or contracts are other documents that may be
asked for during the audit.
Do I Need To Pay For Subcontractors?
It depends. If you hire a subcontractor with no employees,
ask for a certificate of worker’s comp insurance showing
that the owner is covered by a workers’ comp policy. Even
though workers’ compensation insurance is not required in
many states, it provides coverage for that subcontractor if
he or she incurs an injury while working on one of your jobs.
Otherwise, your policy will most likely be used to cover the
injury.
If the subcontractor chooses to exclude themselves
Robin D’Eri
Robin D’Eri, CPCU,
APA, CIPA, AIC,
is Premium Audit
Manager for A.I.M
Mutual. She has been
an AVP-Premium
Audit for Energi
Insurance Services
as well as a senior
field auditor with
State Farm. Robin
has over twenty
years’ experience
in the insurance
industry, primarily
in premium audit.
Steven Privitera
Steven Privitera is Insurance
Operations Manager for
A.I.M. Mutual and has been
a featured industry author
on topics such as leadership,
timely receivables, and
employee engagement.
In addition to a diverse
professional background,
he holds an undergraduate
degree in Finance & Operations
Management from the
University of Massachusetts
Amherst—Isenberg School
of Management, and an MBA
from New England College.
Special thanks and acknowledgement go to memb ers of the
Premium Receivables team under the supervision of Richard
Federico and to the Premium Audit staff, who helped to
streamline the inquiries that come in to them most often.
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