Workers Comp Premium Audit
Definition. WC Premium Audit is the annual end-of-policy review where the carrier compares actual payroll + class assignments against estimated, then bills/refunds the difference.
Also known as: WC Audit, Year-End Audit
Mandatory for nearly all WC policies. Under-reported payroll triggers back-bill at audit time (common owner-surprise scenario). Pay-as-you-go billing eliminates audit surprises by calculating weekly from actual payroll.
Example
$200K estimated payroll → $6K WC premium. Audit reveals actual was $310K → back-bill $3,300 additional.
Sources cited
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Reviewed by California-licensed Property & Casualty insurance agent
Jason Wootton (CA License #0I94454). Not insurance advice, an individual recommendation, or a solicitation in any state. Insurance regulations vary by state. For specific coverage decisions, consult a licensed insurance agent in your state.
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