Does Work Comp Payroll Need To Be Updated After an Audit?

Hey Everyone,

I work for a broker agency. I just had this come up last week where a customers account was reassigned to me and I’m having to jump in and fix…quite a mess.

I had to reinstate a client’s GL, get him paid up on his audits, and those audits revealed much different payroll than what was currently rated on his GL and Workers Comp. I asked him for projected numbers over the next 12 months and he gave them to me in writing. When I caught that the work comp policy had never updated the payroll on the dec pages since 2021 (even after all the audits!) I told him about a month ago that we needed to update those payroll numbers on both policies right away and get it up to date for his current terms.

Now here we are, said changes were made back when we discussed this, and now the company’s have processed the endorsement changes resulting in a ton more $$ premium he has to pay. The owner lost his marbles on me on Friday, saying I acted without his permission and the payroll numbers I used were all wrong. He has already stated he’s moving the work comp to a more “competent” agent moving forward. The GL, he said he’ll keep with me because I did my “due diligence” in getting that reinstated. Yeah, I’m not sure if I want to keep servicing someone after they call me incompetent.

I was under the impression that when audits are done 1. The carrier will update the current payroll automatically on the existing policy. And/Or 2. The customer/agent needs to update it manually each renewal and/or throughout the term if it significantly changes.

Does anyone have insight on this? Why wouldn’t the work comp carrier adjust the payroll after an audit each of the last 4 years??