Calculating Your Premium
When you take out a workers’ comp policy with LCI—or any other workers’ comp provider—your insurance agent provided us with your estimated payroll for the upcoming year, as well as the nature of work your business does. These two factors, along with a few others, determine the cost of your policy: your estimated premium.
The Workers’ Comp Audit
After the one year term, we review your payroll records with you to make sure you paid the right amount of premium to us. This is called a workers’ comp audit, a process we go through with every policy we write. While some audits are done by mail and other in person, every policy is audited. Please open and comply with all audit correspondence from LCI.
We understand that the year may not look exactly how you imagined it, and that you may have more or less work—and in turn, more or less payroll—than you expected. At the time of the audit a few scenarios are possible:
- Your payroll for the year is exactly what you expected – you paid the current amount. It is likely no further action is needed.
- Your payroll for the year is lower than expected – you may have overpaid for your workers’ comp coverage that year. In this case, we may owe you money.
- Your payroll for the year is higher than expected - you may have not paid enough for the amount of workers’ comp coverage. In this case, you may owe us money, what we call an audit balance.
(Note: Audit Assistant Manager Chris Messenger outlines what steps you can take to prevent this in a past blog post.)
The Payment Plan
We understand that an audit balance may be an unexpected expense, and you might have the funds available to pay it immediately. To help you get your audit balance paid off, LCI's Collections Department offers interest-free payment plans, along with flexible down payment options. We divide the balance into monthly payments, and we have you sign a promissory note agreeing to make the monthly payments. We then send monthly invoices for these payments. This is a service we are happy to offer our policyholders to make the audit balance more manageable.
Avoiding the Collections Agency
It is important to note that we can only offer you interest-free payment plans while your balance is in our in-house Collections Department. If you owe a balance after your audit is complete, we make every effort to contact you to discuss your payment options. If we are unable to reach you and work out a payment plan after several attempts, we must turn your account over to an outside collections agency. We do not have any flexibility for payment plans once your account goes to a collections agency, so call us as soon as possible.
To discuss payment plans and your audit balance, please contact:
If you have questions about the audit process, please contact:
LCI is committed to helping you understand your workers’ comp policy. Click here to read a policy overview and contact information for each of our departments.