Audit Magnifying Glass

Conducting A Premium Audit On Your Business

The Premium Audit Process: What to Expect and How to Prepare

For many business owners, an audit ranks in the same category as a root canal. However, in the world of workers’ compensation, premium audits are routine, and relatively quick and painless.

Your workers’ compensation policy premium is based on estimates you provided at the time of application. At the end of your annual policy period, a final premium audit is conducted to determine that you paid the appropriate amount for your workers’ compensation insurance.

Final premium audit is based on actual payroll, operations and job classifications. Your insurance carrier will determine the best method to conduct your final premium audit based on the size and complexity of your business. Depending on your particular circumstances, there are a handful of ways a premium audit may be conducted:

Below are four common questions business owners ask about the premium audit process.

If you have subcontractors working for you, always ask them to provide a current Certificate of Insurance. Keep this on file and provide it to your auditor as it could help avoid possible additional premium charges.

Your business staffing and payroll can fluctuate for many reasons. An annual premium audit is the best way to make sure you are paying the correct amount for your insurance coverage. For more information on premium audits, check out our premium audit infographic, contact your agent or email us at And we promise, you can forego the anesthesia.