How to Make Workers’ Comp Audits Less Stressful: Tips from Our Business Account Managers

The good news is that with a little preparation and organization throughout the year, you can make your audit much more manageable. Our Business Account Managers have compiled a few practical tips to help you stay ahead of the process and reduce stress when audit time arrives, which is typically within 30 days after your policy expires.

✅ Keep Your Records Organized Throughout the Year

One of the most effective ways to reduce audit stress is to maintain clear and accurate records throughout the year. Important items to keep on file include:

• Payroll Reports: Track all payroll information by employee and classification.
• Subcontractor Certificates: Always get Certificates of Insurance from subcontractors to show they carry their own Workers’ Comp coverage.
• Job Details for Subcontractors: Keep a record, perhaps in a spreadsheet, of the specific types of work each subcontractor performed, especially if they take on different roles.

If a subcontractor does not carry their own Workers’ Comp insurance, auditors will treat their payments as part of your payroll exposure, which could result in additional premium charges. Having proper documentation for all subcontractors is essential to avoid unintended cost adjustments.

✅ Let Us Know if Your Business Changes

If your business experiences changes during the year that significantly impact your payroll, such as hiring new employees, updating job roles, or expanding services, please notify us. Keeping your policy accurate throughout the year helps prevent surprises during the audit and ensures your coverage and premium stay aligned with your operations.

✅ Reach Out With Questions

Do not hesitate to ask questions at any time, either before or during the audit process. If anything is unclear or you are not sure what is being requested, we are here to help. Our team is happy to walk you through the requirements and offer support every step of the way.

A Little Preparation Goes a Long Way

Staying organized, keeping us informed of changes, and asking questions early can make the audit process much easier for your business. We know that staying organized all year long is sometimes easier said than done—especially when you’re juggling many priorities and responsibilities. But building that habit, even in small steps, can go a long way toward making your audits more manageable and avoiding surprises.

If you have your Workers’ Comp coverage through Murphy Insurance, we’re always here to help if you have questions about the audit process or need to make updates to your Workers’ Comp policy during the policy term.  If you do not have your Workers’ Comp coverage with us, we would welcome the opportunity to provide a comparative quote. Let us know how we might assist you.