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The workers compensation premium you pay when your policy begins or renews reflects the insurer’s “best guess” as to how much the cost of coverage will actually be for the policy period. The final premium is subject to a number of factors, including actual payroll, loss experience, loss-sensitive rating plans, etc. A premium audit, conducted after the end of the policy period, is used to determine the correct premium. This John Liner Letter discusses premium audits and how they can work to your advantage.
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