Top 10 List of Work Comp Audit Errors
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- Not for Profits
Are You Overcharged for Workers Compensation?
Charged for Subcontractors on Your Audit
Number 3 on the top ten list of Workers Compensation Audit Mistakes
- You are charged on your workers compensation audit for subcontractors.
- Auditors specifically look for uninsured subcontract labor when conducting a work comp audit. You will find questions they ask are designed to discover these types of additional premium generating situations. Remember the auditor is not your friend. He works for the insurance company and he is there to discover all premium generating items for the insurance company. He is not there to help you reduce your premium!
- Uninsured subcontract labor is a legitimate additional premium generating item. However we find many errors occur when an insured subcontractor is mistakenly included in your uninsured contractor list. It is always a better practice to use insured contractors when possible. Don't forget that certificate of insurance. It's your proof your sub carried workers comp and it's your ticket to not being charged for his work comp exposure.
- Here's are a few things to remember about subcontractors;
- Use insured subs when possible.
- Always secure certificates of insurance for work performed.
- Make sure you have valid certificates.
- If allowed in your State and used by your company, be sure waivers are in their proper form.
- Subcontract labor always presents challenges. Make sure you are not caught off guard during the audit process.
- Auditors make mistakes. Always check subcontract labor entrys on your audit for errors!
- Auditors specifically look for uninsured subcontract labor when conducting a work comp audit. You will find questions they ask are designed to discover these types of additional premium generating situations. Remember the auditor is not your friend. He works for the insurance company and he is there to discover all premium generating items for the insurance company. He is not there to help you reduce your premium!
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