Since an audit is an unavoidable aspect of having a Workers’ Comp policy, it is important to understand the process as well as the options you have if you feel the Workers’ Comp audit is not correct. Disputing a Workers’ Comp audit is necessary at times for a number of reasons. The most common are listed below:

-Misclassified Employees: Sometimes the auditor will place employee payrolls in the incorrect class code, causing a discrepancy in your Workers’ Comp audit. Having a detailed job description for each employee on your payroll can help avoid this, however, if this is not available to the auditor at the time of the audit, you can always send this description in along with your dispute.

-Uninsured Subcontractors: If your company uses subcontractors, a certificate of insurance is required in order to avoid being charged for them on your Workers’ Comp audit. Without the certificate of insurance, the subcontractors are charged. When disputing your audit, you need to send a valid Workers’ Comp certificate showing coverage for that subcontractor during the policy period in question.

-Payroll Does Not Match: Sometimes the audited payrolls do not match what you provided to the auditor. This could occur for a number of reasons. Making sure you provide the auditor with payroll figures that only cover your Workers’ Comp policy period will help lower the chance of errors. However, this can always be sent in along with the Workers’ Comp audit dispute to assure the audit is corrected.

While every carrier is different in terms of their Workers’ Comp audit dispute process, there are general requirements that are necessary in order to dispute your audit. A dispute must be done in writing, and must contain a detailed explanation of why you believe your audit is incorrect. Supporting documentation must be sent in with the written Workers’ Comp audit dispute. Making sure you include all of the necessary information will speed up the audit dispute process and assist you in avoiding any payment issues.