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What Is a Workman’s Comp Audit?

Workmen compensation insurance in Minneapolis covers employees’ financial needs should they sustain an injury or illness in their workplace. An audit is a financial survey of a company’s accounts. A workman’s comp audit examines an organization’s financial information to determine whether its employees will receive the correct amount of compensation they deserve.

Sometimes, a company may receive an audit bill that exceeds its capacity. Alternatively, an organization may overpay its audit dues, making it entitled to recover premiums. A seasoned workman’s comp lawyer can review audit cases and resolve your issue. With professional input, you would know whether you can reduce your premiums or recover overcharges.

Consider our experts at the Osterbauer Law Firm to review your workman’s comp audit case. Our dedicated legal experts serve clients to resolve their financial compensation cases. We ensure that workers have the amount of coverage for their medical needs. At the same time, we protect employers from overpaying their dues.

Here is more information on how workman’s compensation insurance and auditing work in Minneapolis.

Workmen Compensation Insurance in Minneapolis

Workers’ compensation insurance coverage provides benefits for workers who suffer injuries or illnesses in their workplace. These policies protect workers financially by paying for medical expenses incurred due to traumatic injuries, occupational diseases, or qualifying mental damages.

At the same time, workers’ compensation coverage protects employers from employee lawsuits. An employee may take legal action when an employer fails to implement the proper safety measures in the workplace. Thus, the employee sustained injuries due to negligence on the employer’s part.

In the state of Minnesota, employers purchase workman’s compensation insurance from their chosen provider. As such, it’s only fitting that such policies protect both the employers and employees.

Workmen Compensation Insurance Coverage

Minnesota workers’ compensation insurance provides financial benefits, which can cover:

  • Lost Wages: Employees who must stop working temporarily after getting hurt on the job can claim partial wage replacement. In other words, the insurance can cover the worker’s lost income while they recover.
  • Medical Costs: Recovering employees would need financial assistance from their employer after suffering an injury on their premises. Insurance can cover medical fees should they require surgery and additional therapy sessions to ensure they heal completely.
  • Travel Fees: An injured worker may be entitled to travel mileage if they live far from the nearest healthcare facility in their area. Insurance can cover the costs of traveling to and from medical facilities for treatment or rehabilitation.
  • Bodily Damage Benefits: Insurance can cover the costs for an employee whose injuries have caused permanent physical damage.
  • Death Benefits: If an employee dies due to work-related injury or illness, their surviving spouse or dependents must receive compensation.

Employers may need to provide proof of their coverage. Proof of coverage is a formal document serving as evidence for a company’s workers’ comp coverage. This document details who receive the benefits under the insurance policy.

Proof of coverage is also an essential document for auditing workman’s compensation. Auditing requires all the details of a company’s workers’ compensation insurance policy to determine whether the allocated funds are in the right place.

Auditing Workers’ Compensation

In general, a workers’ compensation audit ensures that an employer pays the right coverage for their business insurance policy. The auditing process involves an employer estimating their company’s total payroll based on the different jobs each person performs.

The employer’s insurance provider uses that estimate to determine how much the company would pay for their policy. If the employer’s estimated payroll matches their actual payroll, they are in the clear. However, an employer may pay more for their workers’ comp insurance coverage if their actual payroll is greater than their initial estimate.

Meanwhile, an insurance company may owe an employer a refund if its actual payroll is less than its estimate. At the same time, the employer’s premium decreases. The premium is the amount an employer pays for their insurance.

Why Does the Premium Change?

An employer’s premium for their workman’s compensation insurance may change after auditing because their business may have grown or shrunk within their year of operation. Audits typically occur after a year of obtaining an insurance policy.

During that year, a business may have expanded. This growth may have resulted in more people working for the organization, thus increasing payroll payments. Likewise, a company losing workers may have lower payments.

An employer may also promote certain workers. By giving workers higher positions, their class code changes, making their responsibilities different from their initial job description. As such, their compensation would have to adjust to the new risks they face.

How Can Osterbauer Law Firm Help With Workman’s Compensation Insurance?

Consider the Osterbauer Law Firm if you have concerns about workmen compensation insurance in Minneapolis. Our seasoned attorneys have litigated all types of workman’s comp claims successfully. With experience in all sorts of claims, we are confident in our skill to navigate the workman’s compensation system to resolve any issue.

With our experience and resources, we can guide you through the issues regarding workman’s compensation insurance and audits. Common trouble involves shock audits where you, as an employer, may receive a bill for a different premium than your original policy. Allow us to resolve your case, dispute audits, and reduce premiums.

We dedicate our services to securing compensation and recovering overcharges. At Osterbauer Law Firm, we prioritize our clients’ wellbeing to ensure they obtain the compensation their employees deserve. We guarantee this win by understanding cases inside and out. Contact us today for a professional review of your audit case to identify your next steps.

Conclusion: What Is a Workman’s Comp Audit?

Workman’s comp audit is an insurance company’s annual request for employer and employee records. These companies use such records to determine whether an employee’s payroll reflects the right amount of compensation they deserve should they sustain injuries in the workplace. Likewise, the employer must provide a matching amount of compensation for their employees.

Get in touch with our expert workman’s comp attorneys to discuss your case. We can set up a physical meeting in our office, or we can travel to meet you. At the Osterbauer Law Firm, we adjust to your convenience, so you have nothing to lose.

You can count on our skills and resources to fight for your rights regarding workman’s compensation. Call us now at 612-334-3434.


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