We’re sure we don’t need to tell you audits can be intimidating.
Taking steps to be sure your business is ready for your next worker’s compensation audit now can help relieve some of the stress. Here are a few tips:
Point of Contact
Generally speaking, it’s better to have one person work with the auditor that has experience in the auditing process. The benefit is they will know how the process works and will be able to communicate better with the auditor. Be sure your point of contact is familiar with your current policies and the exposures your company had for the prior policy year. If you are prepared for discrepancies in payroll or job classifications it will make it easier when working with the auditor. Preparing your point of contact properly tends to make things faster, easier, and better for everyone – which is why it’s the first step in your preparations.
Your point of contact should have full access to records, documents, copies of certificates, and anything else that the auditor may need in order to do their job. If you’ve had a worker’s compensation audit in the past, they should also have a copy of the results and be familiar with both the final results and any problems that may have occurred.
Gather the Records
As a business owner, we know you don’t have spare time to spend all day hunting down obscure files so that minor facts and figures can be double-checked. It’s far better to gather the records beforehand and leave them in one place for the audit. The best way is to file your information in a way that ensures everything will be ready when you need it and you can simply pull out the stack anytime. The auditor you are working with will appreciate the fact you took the time to prepare before the meeting so their time is used more efficiently.
If your record-keeping needs are more complicated than that, consider either filing more than one copy (one for your normal needs, one for audits) or switching to an electronic records system that can simply print out only the necessary files at any given time.
Review the Records
In most cases, your documents will need to have each category broken down; again, speak with your insurance agent to find out the specifics as they apply to your business.
Check for any Certificates of Insurance
This is especially important if you’ve hired subcontractors and other workers who may have needed insurance, but not received it from your business. If you are unable to provide documentation of their own insurance, you will pick up the exposure on your policy and be charged for the time they were working for you. That’s a cost that can build up quickly if you tend to use several subs.
Be sure that the certificates of insurance you have received coincide with the period of time the contractor actually worked. You want to be sure the certificate covers the time the work was performed. These details may be more than you think. Verifying this will help you save time and money.
Remember, you don’t have to face any of this alone. Our Certified Insurance Consultants are here for you to help through every step of the process. From preparation to working through an audit, we are here for you to help make things go as smoothly as possible.
