Premium Audit — Frequently Asked Questions

A premium audit is a standard review conducted at the end of your policy period. It verifies your business operations, payroll and classification information to ensure your premium reflects your actual business activity for the policy term. 

Your workers’ compensation policy is issued based on estimated payroll and business activity. A premium audit allows us to compare your estimates with your actual payroll, operations, and exposures during the policy period. This ensures your premium is accurate and complies with state regulations.

This is a preliminary audit, which is a standard part of the underwriting process for certain policies. Even though your policy has just begun, the review helps ensure that the information used to issue your policy—such as payroll, operations, or classifications—is accurate and complete. 

Preliminary audits allow us to: 

• Confirm that your coverage is properly set up from the start 
• Help prevent larger adjustments at the end of the policy term 
• Address any questions early so there are no surprises later 

This type of audit does not mean there’s a problem with your policy. It’s simply a proactive step to make sure your coverage and premium accurately reflect your business.

Even if your policy is cancelled, an audit is required to determine the final earned premium for the time the policy was active. Estimated payroll was used at policy issuance, and the audit confirms what actually occurred before cancellation. 

Audits may be conducted in one of the following ways, depending on your policy and state requirements: 

• Physical (in‑person)
• Mail
• Electronic (online) 

You will be notified of the audit method and provided with detailed instructions.

The time required depends on the size and complexity of your business and how quickly documentation is provided. Most audits can be completed promptly once all requested information is received.

An electronic audit allows you to securely submit payroll and business documentation online, rather than meeting with an auditor or mailing paperwork. This method is often faster and more convenient. Please note that electronic audits require photos of your business operations.

Photos may be requested to help verify: 

• Business operations
• Job duties
• Equipment used
• Work environments 

This helps ensure employees are properly classified and your audit is accurate. 

Examples include:

• Exterior of the building (showing signage or business name, if applicable)
• Interior work areas where operations take place
• Equipment or machinery used in daily operations
• Tools, inventory, or materials stored on site
• Vehicles used for business purposes
• Office or administrative areas (if applicable)

These photos are used solely for audit review purposes and help ensure the audit is completed accurately and efficiently.

After your audit:

• If payroll or exposure increased, you may owe additional premium.
• If payroll or exposure decreased, you may receive a return premium (refund).

Your final premium is always based on actual exposure, not estimates.

Yes. You must report anyone who performed work for your business, including subcontractors. You may need to provide: 

• Certificates of Insurance (Workers’ Compensation and/or General Liability) 

• Written contracts 

• Payment records 

If a subcontractor does not carry proper insurance, their labor costs may be included as payroll exposure. 

Workers’ compensation premiums are estimated at the start of the policy. After the audit, your premium is recalculated using: 

• Actual payroll 
• Business operations 
• Employee classifications 

Any differences between estimated and actual exposure result in a premium adjustment. 

In the residual market, audit results may adjust your current policy term premium, not just the expiring policy. If your actual exposure is higher than originally estimated, your premium will increase accordingly. If the audit reveals higher or different exposures, rules require the current‑term policy to be updated when: 

• The audit results in a premium increase of $500 or more, or 
• There is a premium variance of 25% or greater 

This process allows premium to be paid throughout the policy term rather than as one large charge at the end. It also ensures that your policy accurately reflects the risk and payroll.

Yes. You are still required to complete the audit. You may be asked to provide documentation such as:

• Proof of no payroll
• Tax filings showing $0 payroll
• Statements confirming business inactivity

This ensures accurate and compliant policy records.

Audit completion is mandatory in the residual market. Failure to complete the audit may result in:

• Policy non‑compliance
• Additional premium charges
• Policy cancellation (based on state rules)

You can check your audit status in either of the following ways: 

Call Us 

Customer Service: 866‑221‑9640 

Select “Audit” from the phone menu. 

Online 

If you have portal access, log in and check the Documents section to see whether your audit has been completed. You may also chat with a representative through our portal chat system for verification. 

Your login credentials are located on the second page of your audit worksheet. 

If you cannot locate your worksheet or need your login resent, please call 866‑221‑9640 and select “Audit.”

Please contact Customer Service at 866‑221‑9640 and select “Audit.” A representative will help verify your information and issue updated login credentials if needed.

If you’re unable to log in, you may still submit your audit using one of these methods:

Email: [email protected]

Mail:

Assigned Risk Solutions

P.O. Box 40767

Lansing, MI 48901‑7967

(Certified mail preferred)

Fax: 844‑778‑1070

We’re here to help. If you believe something on your Workers’ Compensation audit is incorrect, we are happy to review your concerns. To dispute an audit, please submit a written request with supporting documentation to:

Email: [email protected]

Fax: 844‑778‑1070

Mail:

Assigned Risk Solutions

Attn: Audit Disputes

P.O. Box 40767

Lansing, MI 48901‑7967

Please include:

• Policy number

• Policyholder name

• Explanation of the dispute

• Supporting documentation (payroll records, tax documents, certificates of insurance, classification clarification, etc.)

Providing complete information helps us review your dispute quickly and accurately.

For assistance, contact Customer Service at 866‑221‑9640.