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Thursday, March 23 2017

You may be reading about a recently approved endorsement for work comp policies which allows insurance companies to charge up to 2 times estimated annual premium, if the policyholder is uncooperative with the premium audit.  This endorsement does not apply in Florida, as it is unnecessary, because the penalty in Florida is far more punitive.

If a Florida employer does not cooperate with the final premium audit, then the carrier may charge a premium up to 3 times the estimated annual premium.  For example, let's assume a business has an estimated annual premium of $50,000, and they refuse to cooperate with the audit process.  The carrier may charge the employer a $150,000 penalty on top of the estimated premium of $50,000.

But that's not all ...

If the employer conceals payroll or misrepresents employee duties as to avoid misclassifications, then the carrier can charge 10 times the difference between what the employer paid, and what they should have paid.  In addition, employers could be subject to criminal penalties.  

Posted by: AT 11:35 am   |  Permalink   |  Email
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