The National Council on Compensation Insurance (NCCI) approved a workers compensation policy endorsement that went into effect on January 1, 2017. An insurance company can charge up to 2x the originally estimated premium when a policy holder is in noncompliance with an audit request. The rule requires that the surcharge be refunded if an insured has paid the surcharge, but then cooperates on the audit.
Failure to cooperate with the audit may result in a cancellation of workers compensation coverage. Audit noncompliance will disqualify an employer from obtaining coverage from any insurance company until the outstanding audit is complete.
If you have any questions about this information, please contact your local independent insurance adviser.