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As rates firm, an audit review is essential

Ken A. Crerar, president/CEO of the Council of Insurance Agents and Brokers, notes, "We've been cautious up to now about declaring a market turn, but I think it's reasonable to say that the market has made a hard turn after two quarters of price increases and tighter underwriting." Based on a market survey for the first quarter of 2012, Workers' Comp rates were up 7.4 percent -- more than any of the other commercial property/casualty insurance lines.

This firming trend coupled with the impending rate changes by NCCI means that employers are pressing for reviews of their Workers' Comp audits, with an eye to reducing premiums.

Many employers do not realize that classification and Experience Modification calculation errors are rampant in Workers' Comp. Some common mistakes that Certified WorkComp Advisors have found include:

While the annual Workers' Comp audit can result in unpleasant surprises, few employers treat it with the same concern that they would treat an IRS audit. Advanced planning is the only way to ensure an error and overcharge free audit.