Avoid Preventable Audit Noncompliance Charges
As Carmella explained in a previous blog post, Workers’ Compensation is quoted on an estimated basis, and policyholders with these coverages are subject to an audit at the end of a policy term. Audits can result in either a credit or additional charge in premium.
To help ensure businesses comply with the audit process, the State of Wisconsin implemented a penalty called an “Audit Noncompliance Charge (ANC)” that is mandatory on all Wisconsin Worker’s Compensation insurance policies.
As a result, businesses that do not comply with their workers’ compensation and general liability audits can see substantial penalties from their insurance carriers.
Effective 10-1-19, the non-compliant audit charge will be changed from 2x the estimated annual premium to 1x the estimated annual premium. This means that the non-compliance charge will be an additional full annual estimated premium, or the total workers’ compensation charges for the year would be 2x what is estimated on the policy.
This is a substantial, but completely avoidable fee! When you receive your audit information from Marshfield Insurance, please respond!
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