Premium audit


What is a workers’ compensation premium audit?

Unlike other types of insurance you purchase, the premium you pay for your workers’ compensation coverage is initially an estimate and is not finalized until the end of your policy period.

Your organization’s payroll can change throughout the year if your workforce grows or shrinks, employees work overtime, or your organization expands or diversifies operations.

When a policy period ends, Superior Point conducts a premium audit of the past policy period payrolls and classification(s), and the billed premium is adjusted to reflect any changes. The premium audit ensures that premiums are fair and accurate.

The final premium might be more or less than the initial billed premium. If the premium estimate was too low, the policyholder is charged additional premium. If the estimate was too high, the policyholder is reimbursed for any unearned premium.

Some policyholders have physical audits on location at their own facility, while others are asked to complete their audit online or on paper. Superior Point will let you know how your audit will be conducted.

Workers’ compensation premium audits are an industry standard. The requirement to be audited is outlined in Section 5G of your policy.


Prepare for your audit

If you are having a physical audit (at your facility):

  • Have your records ready in advance
  • Make sure your records are complete and accurate
  • Be available to answer questions

If you are asked to complete your audit online or on paper:

  • Have your business taxes on hand
  • Make sure your records are accurate
  • Be sure to answer all of the questions and to send in business tax documents
  • Contact us if you are unsure which tax documents are needed
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New physical audit guidelines

New physical audit standards are in effect for the Minnesota Assigned Risk Plan, mandated by the Minnesota Department of Commerce. These new standards will affect both construction and non-construction accounts and those policies with a 1/1/2015 effective date and beyond. Please see the requirements below to assess the likelihood of a physical audit.

  • All accounts with an annual premium of $10,000 or more will receive a physical audit
  • All construction accounts over an annual premium of $3,000 will receive a physical audit
  • All non-construction accounts with an annual premium between $3,000 and $9,999 will receive a physical audit once every 3 years
  • 20 percent of accounts with an annual premium under $3,000 will be randomly selected for a physical audit, 50 percent of which will be construction and the other 50 percent non-construction


Additional questions

Want to learn more about premium audits? View common questions or contact us.

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