Premium Audit Frequently Asked Questions
Things to Know About Your Premium Audit
What is a Premium Audit?
Your policy premium was based upon information provided by you or your Agent (e.g. payroll, sales) prior to the start of your policy term. Because premiums are charged based on actual payroll or sales for the year, we are required to verify that your premium accurately reflects the state of your business over the policy term. This entails reviewing the original estimates against your actual payroll and business operations. The review is referred to as a premium audit.
What is a Virtual Audit?
If you are eligible, your premium audit may be conducted electronically and over the phone with a Travelers auditor. Watch this short video to learn more about what to expect from your virtual audit experience.
Why do I need to complete an audit?
Prior to the start of your policy, your agent and a Travelers underwriter estimated your premium based on your expected business operations. At the end of your policy period, an in-depth review of your operations is needed to determine if premiums were correctly estimated. We may need to adjust your premiums based on actual business outcomes, given changes that may have occurred in your business. This is required by your policy and a standard industry practice. Your participation in providing requested documentation is essential in order to calculate your final premium.
Is a premium audit optional?
No. Our insurance policies and state insurance filings require us to conduct annual premium audits of certain of its business insurance policies (Workers Compensation, Automobile, and General Liability). This is a standard practice for all insurance companies that provide business insurance coverage. While the audit is a routine practice for us, we understand that it may not be for you. We want your premium audit to go as smoothly as possible so we've provided Recordkeeping Tips to help you organize and prepare necessary information well in advance of your audit.
Please be aware that effective in 2017 many states adopted audit noncompliance rules which enforce a penalty if your Workers Compensation premium audit is not completed at the expiration of the policy period. Not providing the requested information or documents may result in an Audit Noncompliance Charge, estimated audit and/or cancellation of any coverage in force at the time of audit.
At the end of your policy period you will be contacted by our Premium Audit department letting you know it is time to complete your audit. You will receive an invitation to complete your audit online or in-person. The method by which your audit will be conducted is typically based on premium size, type of operation, and state requirements. In either case you will be advised as to the documents needed for your audit (refer to Recordkeeping Tips for examples). Your prompt attention and cooperation with the process is important to assure timely processing of your audit results. Please note that a premium audit is required for all Workers Compensation and most business insurance policies regardless of whether the policy has been renewed, cancelled or moved to another carrier.
Will my premium change as a result of the audit?
After the audit is conducted your premium may be adjusted based on your business activity during the policy period. Business activity is confirmed by a review of your sales or payroll (whichever is applicable), operations, employee classifications, use of sub-contractors and inclusion or exclusion of officers. Providing accurate data ensures you do not pay more (or less) than you should for proper insurance coverage. Please review our Recordkeeping Tips that help our customers avoid surprises.
Preparing for Your Audit
How can I prepare for my audit?
Keeping proper records and documentation throughout the policy period may save you time and possibly money. An accurate audit depends on having your records prepared for review. If the audit is done in person, be sure that a person with detailed knowledge of your business is available to answer questions and review results of the premium audit.
Please review our Helpful Tips to Prepare for Your Premium Audit.
I have questions about how to complete my online audit or Policyholder Report.
Please contact Customer Service by phone or email and we will be happy to assist you. You may also Email Us, which helps to direct your request to the appropriate customer service team member.
Can I complete my audit online?
Many customers are able to complete their audit using our online audit tool, Electronic Policyholder Report (ePHR®) and/or submit records electronically. The type of audit you are eligible for is determined based on premium size, type of operation and state requirements. If you are eligible to use our online tool you will receive an invitation letter with registration instructions.
I lost my letter with my online registration instructions. What do I do?
You will automatically receive a second letter containing registration instructions. If you do not want to wait, you can call Customer Service at 800.842.4271 or Email Us and request a copy to be mailed. Please note that for security reasons, Customer Service cannot provide the User Id and Personal Identification Number (PIN) over the phone or via email.
During Your Audit
Where do I fax my audit documents?
For a paper Policyholder Report that was mailed to you, include a cover page with your policy number and effective date. Fax to 800.879.0892.
For Electronic Policyholder Report supporting documentation you can print a bar-coded cover sheet that will automatically be associated to your report:
Login to Premium Audit (registration instructions are available on your invitation letter)
Choose the appropriate policy
Navigate to “Supporting Documents”
Use the cover sheets available for each document type and Fax to 855.298.6616
How do I confirm that my fax was received?
You can verify receipt of your fax many ways:
You will receive an automated message from Travelers Premium Audit indicating when all your documents have been received. It is not necessary to register for this service.
If you are a registered online user, you can log into Premium Audit and click on "view" and select Supporting Documents to see faxed documents that have been received.
You can also contact Customer Service at 800.842.4271 or you may Email Us and request the status of your report.
My tax records don't line up with my policy period. What do I do?
If your quarterly tax reports don't line up with your policy term, provide your last four filed quarterly reports or last annual tax report. We will be able to reconcile to our satisfaction using the last four filed quarterly reports or an annual report. Please refer to Recordkeeping Tips additional information.
What if my payroll records don't line up with my policy period?
If your payroll report doesn't match your policy term, you can round the payroll report to the first of the month. It is acceptable to deviate from the policy period by 30 days. For example, if your policy period is 6/15 - 6/15 you can provide payroll for 7/1 to 7/1 or 6/1 to 6/1. Please refer to Recordkeeping Tips additional information.
How do I check the status of my audit?
Online users can log into the Premium Audit site and view the Audit Review Status for the policy that is actively being audited. If you haven't yet registered, refer to your ePHR or Virtual Audit invitation letter or contact Customer Service to obtain registration instructions.
If you completed a paper Policyholder Report or your audit was done by a Premium Auditor you can contact our automated system at Customer Service at 800.842.4271 and select the prompt to check your report status. Or, you may Email Us to request the status of your report.
I missed the online audit deadline. Can I still send in my information?
Yes. If you are a registered online user, log into Premium Audit and complete your audit. You can also fax documents to Customer Service.
I forgot my password. How do I recover it?
If you've previously registered online, you can reset your password by selecting "Need login help?".
After Your Audit
How do I obtain a copy of my completed audit?
If your audit was done in person by a Premium Auditor (physical audit) you can request a copy of the auditor's worksheet by completing the Contact Customer Service form or sending an email to email@example.com. Be sure to include your policy number and policy period effective date.
If you completed your audit online using ePHR, logon to Premium Audit website and navigate to Complete Audit Interview to obtain a copy. Refer to your invitation letter for your login in information.
If you completed a paper Policyholder Report, you may request to have a copy emailed, faxed, or mailed to you, by Emailing Us and specify your preferred method of delivery. You can request a copy by completing the Contact Customer Service form or call our Customer Service number. Please have your policy number and policy period effective date available. You can find this information on the original policy paperwork, on your Premium Audit Adjustment Notice, or on your renewal notice.
Why is my audited premium different than my original premium?
At the beginning of the policy period your premiums are estimated based on your expected business operations. However, during your policy year your business operations may change. After your policy period is complete, we review your operations in detail in order to adjust your premiums – either up or down – based on actual business outcomes.
The Premium Audit Adjustment Notice provides details about the calculation of your audit premium. If you have questions about the information contained in this document, call Customer Service at 800.842.4271 or Email Us.
Why did premium change as a result of the audit?
After the audit is conducted your premium may be adjusted based on your business activity during the policy period. Business activity is confirmed by a review of your sales or payroll (whichever is applicable), operations, employee classifications, use of sub-contractors and inclusion or exclusion of officers. Providing accurate data ensures you don't pay more (or less) than you should for proper insurance coverage. Please review our Recordkeeping Tips that help our customers avoid surprises.
When will I know if my premium will change?
Most customers will receive a Premium Audit Adjustment Notice after your audit has been completed. If you registered to access our secure website, you can sign in to view a copy there. For audits done in person or by paper (Policyholder report), you can contact Customer Service.
How can I get my billing account balance?
Contact a Travelers Billing service representative at 800.252.2268 for assistance with your policy accounting questions. Please note this phone number is different from the Premium Audit Customer Service number.
When can I expect to receive my refund?
A Travelers Billing Service representative can assist you with questions regarding your bill. Call 800.252.2268 for assistance with your policy accounting questions. Please note that this phone number is different from the Premium Audit Customer Service number.
What if I don't agree with my audit?
We're happy to review your audit results. To begin your request, you can email, fax, or call our Customer Service team and speak with a Dispute Specialist.
To expedite your email or fax request, please be sure to include the Customer Name, Policy Number, Effective Date, and the audit question.
Premium Audit Customer Service Dispute Specialist Contacts
Phone: 800-842-4271, Option 5
E-mail: Contact Customer Service Form
What is Audit Noncompliance?
In an effort to encourage compliance with an insurer's request to audit an insured's books and records at the conclusion of its Workers Compensation policy term and to bring a consistent approach to how insurers apply charges to insureds who do not comply with the request, the National Counsel of Compensation Insurance (NCCI) has adopted policy language that requires the insurer to charge noncompliance charges when audit information and verification documents are not provided. In states where this Audit Noncompliance language has been adopted, audit noncompliance charges (ANC) may be applied to Workers Compensation policies effective on or after 1/1/2017. An insured will be deemed noncompliant if the audit is not completed or if permission to review audit records is not provided.
How are audit noncompliance charges determined? Is it outlined in my policy?
In the states that have adopted the ANC practice, the state specific audit noncompliance percentage charges are determined by NCCI. Specific ANC charges are reflected in the Audit Noncompliance Charge Endorsement of your Workers Compensation policy.
What will happen if I don't complete my Premium Audit?
If you have an Audit Noncompliance Change Endorsement or if ANC is otherwise part of your Workers Compensation policy, and you have been notified that your policy will be audited and you fail to comply, you will be billed an ANC charge at the conclusion of your policy term. The ANC charges vary by state (check your Workers Compensation policy endorsement for details or contact your Broker or Agent). Your Premium Audit Adjustment Notice will show the ANC charge by location and state. Additionally, you will receive an Account bill from Travelers, your Agent or your Broker showing the total balance due including both the premium and the audit noncompliance charge.
Why did I get a letter from Travelers about Audit Noncompliance?
NCCI asks that you be notified in writing of the ANC charge amount that will apply if your audit is not completed. Travelers also sends reminder letters during the audit process that outline the specific noncompliance charges that may apply to your account. You may receive one or more of these letters while you are actively working to complete your audit. If you do, please continue to work with your auditor and/or submit any outstanding required information online. You can also contact Customer Service at 800.842.4271 with questions or to assist you with the completion of your audit.
Can audit noncompliance charges be reversed?
Yes. The charge may be reversed in certain circumstances once all the requested information needed to complete the audit has been received. If you are unclear as to what information is needed to fulfill the requirements of your premium audit, please contact Premium Audit Customer Service at 800.842.4271.