Texas Mutual Insurance Company - Providers of Workers' Comp Insurance

Premium Audit Basics

Texas Mutual wants to make the premium audit process as seamless as possible for policyholders. To help you understand the process, we provided answers to the most common questions about premium audit below. If you still have questions, visit our FAQs, see our glossary of premium audit terms or call us at (800) 859-5995.

Why is a premium audit necessary?

Workers' compensation policies have adjustable premiums. The premium for your policy when it was issued was based on operations and estimated payroll exposures you provided during the application process. The final premium is calculated after the policy expires and is based on your actual payroll exposure during the policy period. An audit also ensures that your business is correctly classified by verifying your operations in greater detail. The final audit ensures that you have paid the correct premium.

What types of premium audits are available

Premium audits may be performed in a few different ways:

  • Physical audit - Visit by a field auditor is required
  • Telephone audit - Conducted over the phone (usually less-complex audits)
  • Online audit - Audit information is input online by the policyholder (least-complex audits)

Can the policyholder choose the type of premium audit?

The type of premium audit is assigned according to the size and complexity of the account. Accounts with larger exposure and payroll, as well as multiple classification codes, are assigned as physical audits. Accounts with smaller payroll and exposures and a few classification codes are assigned as telephone audits. The smallest accounts with one or two classification codes are assigned as online audits. Under special circumstances, a policyholder may request a particular type of audit if it will be difficult for them to comply with the audit type originally assigned to them. Audit management will approve or disapprove the proposed change.

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