At the beginning of each policy period you tell us (or your insurance agent) your estimated payroll. You estimate how many employees you’ll have for the next year, what kind of work they will perform, and how much you will pay them. With this information, we calculate your premium, or how much your policy costs.
Then, when the year is over and your policy expires, we audit your policy to compare your premium, which was based on estimation, to your actual payroll for that year. In a nutshell, this is how we calculate how much you pay for your workers’ comp coverage.
But what happens if you hire a new employee? This means your payroll will be significantly higher than you estimated. If you take the proper steps and communicate any changes with us, this can mean the difference between paying a little more in your monthly bill or paying a large sum at the end of your policy period.
Our department is always available to help with letting you know what steps to take for your workers’ comp when you hire a new employee. We can help you:
- Adjust your payroll and class codes for your LCI policy.
- Create endorsements for your policy.
- Avoid owing a large sum at the end of your policy.
Feel free to contact me with any questions regarding audits here at LCI Workers’ Comp. I can be reached at 985-612-1241 or at firstname.lastname@example.org.