Did you know that 70% of audits for workers’ compensation insurance are incorrect? Yes, it’s true—most audits contain errors. But why does this happen so often?

The Root Cause: Lack of Information

The main reason audits are frequently wrong is that auditors don’t receive enough accurate information to perform their job correctly. Specifically, they need detailed data to verify class codes, which represent the types of jobs employees are doing.

Understanding Class Codes and Job Changes

Sometimes, employees switch between different jobs or roles. Each job has a specific class code and an associated hourly rate. It’s important that the audit reflects this accurately so your insurance premiums are calculated correctly.

Why Audits Can Be Confusing and Stressful

If the audit process is explained well and you understand how it works, it’s actually quite simple. However, many people find it confusing and emotionally frustrating. Sitting with an auditor without understanding the process can feel intimidating or even like an attack.

Need Help or Have Questions?

Thanks for reading! If you want to learn more, feel free to check out my other videos or reach out to me directly with any questions you have about workers’ compensation audits.