Premium Audit Process

Simplifying the Audit Process

Our workers’ compensation insurance premium audit process includes the review of your business records and operations to ensure that your coverage information is accurate. When your policy was issued, your premium amount was based on estimated payroll figures. Typically, the audit process occurs at the end of your policy term and uses your actual payroll to determine your final premium. We want to simplify the audit process for you, making it a positive experience. For additional information regarding the audit process please read our Your Premium Audit Made Easy brochure.

What is a Premium Audit?

A workers' compensation premium audit may be performed at the expiration (or cancellation) of the policy to ensure that the premium has been assessed properly and accurately for the policy term.

Your premium is calculated based on the projected payroll information we receive from you at the inception of the policy. To ensure that your premium has been priced accurately and fairly, the auditor will verify your business is classified correctly and compare the projected payrolls you provided at the inception of the policy term to the actual payroll at the end of your policy term. 

What Types of Premium Audits Are Available?

Audits may be performed at policy inception, midterm, expiration or cancellation.

In addition, audits may be conducted in one of the following methods:

Physical or in-person



What Do I Need to Prepare for an Audit?

Having the appropriate records available for the audit will allow the auditor to complete the process quickly and smoothly. Our Premium Audit Checklist covers the most typical information needed for an audit. 

Please note: The accurate and timely reporting of your payroll is paramount to a correct premium calculation. It is against the law in Maryland for anyone to knowingly or willfully present a false or fraudulent claim for payment of a loss or benefit or knowingly or willfully present false information in an application for insurance. See Annotated Code of Maryland, Insurance §27-805(b).

Your Audit Results

The results of your audit will be summarized on the  Chesapeake Employers’ Policy Audit Summary Notification, which will be mailed to you following your audit. The Policy Audit Summary Notification reflects any changes in payroll and/or premium for each classification on the policy.

Following the Policy Audit Summary Notification, a Premium Invoice may be generated. This Premium Invoice reflects premium adjustments resulting from the audit which could lead to additional premium due (debit) or a premium refund (credit). 

Note: Any payment made to Chesapeake Employers is always applied to the oldest balance on a policyholder’s account.