Workers Comp. Coverage
If my company purchase workers comp. insurance for a say 100K in payroll for a year but only actually pays 80K can you expect to get a rebate from your insurer?
Each year, workers compensation insurance providers reconcile or “audit” your payroll to make sure they’ve received the correct premium. If they haven’t, they’ll bill you the difference. However, if they haven’t yet done the audit, you can call them and ask them:
1) When do they plan to do the annual worker’s compensation payroll audit for your business?
2) Based on the findings, when are you likely to get a refund (or will they apply it to the next year’s premium)?
One thing you might also ask is whether they offer a Pay-as-you-go option for workers comp. That would tie your work comp premiums to each payroll cycle and improve your cash flow by only taking out some portion of work comp premium each pay period (instead of all at once at the start of the plan year).
I’ve just updated the work comp articles and they’ll be posted on our website in the coming weeks. Meanwhile, you might want to contact The Hartford and ask about their pay-as-you-go program. Our existing article on work comp is below for reference.
Hi Dean, I realize I didn’t specifically answer your question. Yes, you should be eligible for a refund. But each company has different procedures. You may need to request a refund in writing (some won’t offer it if you don’t ask). To further complicate the answer, each state has different rules, and your process may vary by state as well as whether you purchased work comp through a broker, insurance company of the state fund (if there is one). Your best bet is to call and ask the insurer directly — not only when, but how you might obtain your refund – in other words, ask them, “what is the exact process and timing for getting a refund of any overpaid worker’s compensation premium?”