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Why are Premium Audits Required?

California insurance industry regulations require us to perform regular payroll reviews to make sure you are charged the correct amount of premium for the policy period and to verify your business operations.

Your annual premium is based on the following:

  • If you pay premium in monthly or quarterly stipulated installments, then the premium you pay will be based on the annual payroll estimates that you or your broker provide to State Fund.
  • If you pay your premium based on actual payroll reporting on a monthly, quarterly or annual basis, then your annual premium is based on this actual payroll reporting.

After the policy year is completed, our auditors will review your payroll records and verify your actual payroll and business operations to ensure that the final premium is accurate. The audit may result in a return of overpaid premium or it may generate an invoice for additional premium.

The auditor will also:

  • Verify that the officer or owner information on the policy is current and accurate.
  • Verify that all locations from which you conduct business are reflected on the policy
  • Verify the job duties and payroll of employees who were injured during the policy year.


We’ve provided the following to assist you and your broker (when applicable) in preparing for the audit. Your auditor is also available to answer questions and provide guidance in preparing for the audit.

All Workers’ Compensation Insurance carriers in the State of California operate under the regulations set by the Workers’ Compensation Insurance Rating Bureau (WCIRB). 

This short video will explain the audit process and may answer any additional questions you may have.


The Premium Audit Guide will provide answers to some of the frequently asked questions we receive. It will also provide a list of some of the more common records that our auditor will need to complete the audit.

Para una versión en español de la guía para una auditoría de prima, haga clic aquí..

The WCIRB Learning Center website discusses topics that may pertain to your operations.

This short video covers important details specific to the construction industry, and explains steps to prepare for an audit.


The Premium Audit Guide-Construction Operations is tailored to provide information to our client base that specializes in Construction Operations. 

Para una version en español de la guía de auditoria de prima para construcción, haga clic aquí.

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