Premium Audits

We work hard to take the mystery and complexity out of the audit process, and to ensure that your business is treated fairly.

Our in-house, local, premium audit professionals are committed to making sure your business maintains the right level of coverage for your exposures and that you only pay the appropriate premium for that exposure. No more and no less.

When workers’ compensation policies are issued, the premium is based on the estimated payroll provided to us by you and your agent. A final audit is conducted at the end of your policy year (or when a policy is terminated) to determine the actual payroll and exposures your business had. Your premium may be adjusted as a result of the audit. If exposures have been overestimated,  you will receive a billing credit. If exposures have been underestimated, an additional bill will be sent to you.

Types of Audits

The type of your business and/or the size of your policy determines whether we audit by mail or on site:

  • By Mail — We do everything we can to help you focus on your business. So whenever possible, we conduct audits by mail. We send forms that ask for information about payroll, subcontractors, and similar items. With the proper records, a mail audit is easy to complete. Each form has clear instructions, and if you have questions, you can call our premium audit professionals at (808) 208-8340.
  • On Site — On-site audits help us get to know you and your business better. They give us the opportunity to see your business at work and to ensure that employee classifications are accurate. Your HEMIC auditor will set up an appointment to review your records on-site. He or she may also ask to review your business operations.

Keep Good Records to Reduce Your Exposure — And Lower Costs

Maintaining payroll records that accurately reflect the services of each worker can help lower your costs, and it will help to avoid audit surprises.

The accuracy and integrity of an audit is based on the quality of information provided to us, as well as the proper application of industry and manual rules. The information you provide to us serves as a starting point to verify, validate and document our determinations:

  • Accounting ledgers
  • State and Federal tax reports
  • Individual earnings cards
  • Payroll
  • Ownership tax receipts
  • Cash disbursements
  • Certificates of Insurance for subcontractors