Workers compensation is a system designed to protect workers from unsafe conditions on the job. If a worker is injured or hurt at work, their employer has an obligation to take care of them safely at all times. This means that employers must follow strict regulations and guidelines in order to ensure their workers are protected.
It’s also important for employees to know that the company they work for does not put profits over workers. In other words, if you’re employed by a company, then you can trust that it’s doing everything it can to make sure you receive fair pay, benefits, and protections.
So, what happens when your company is put through a workmans compensation audit? Keep reading to find out more about these audits and what they might reveal about your business practices.
Number of Employees
One of the first things auditors will look for is the number of employees you have and how many hours they work. Failing to keep accurate records or underreporting hours can lead to a significant increment in your premiums. You can expect to be scrutinized for paid leave, overtime, and other regulations to ensure you’re reporting all of your employees correctly. If auditors find large numbers of employees or an unusually high number of hours worked, this could be a sign that you’re attempting to hide something.
Your Business Activities and Operations
In addition to checking employee numbers and hours, your workman’s compensation audit will also look at the nature of your business operations. If the work your employees do poses a serious risk to their health or safety, auditors will want to make sure that you’re not only providing adequate coverage to your workers but also implementing safe workplace practices to reduce the likelihood of severe injury, or worse.
The Workplace Environment
Your auditor will also be looking at the physical setting of your business. They’ll want to know about the condition of your building, equipment, and other assets. If they find that you’re not maintaining these assets properly, this could lead to a heftier policy quote.
Your audit will also take a look at your workplace environment and the standards that are being met. If you have employees who are working in a risky environment, you could be charged higher in premiums.
Worker’s Comp Claims History
Finally, auditors will be curious to know how many injuries and illnesses have been reported at your company as this will determine the risk level of your business, and ultimately, the cost of your premiums. If there has been a pattern of frequent injuries, this could lead to higher premiums.
Workers comp audits are common, and they exist to protect the insurer, the company involved, and its employees. A professional insurance company will hire auditors to look at every aspect of your business to make sure you are reporting everything correctly and that your risk is high enough to cover any claims.
This helps ensure that your employees and your company are adequately covered in the event of an injury. The best way to prepare for an audit is to review your reporting processes and procedures.
Ensure you follow all the rules, regulations, and best practices. Remain calm and answer all the auditor’s questions. Auditors are there to ensure that everyone is doing things properly and according to best practices. They don’t want to cause any trouble for your company, so don’t let their presence rattle you.