Premium Audits

When KEMI issues a policy, the cost of the policy is based upon the policyholder’s classification and payroll estimates. An audit is completed at the end of the policy term to verify actual classification(s) and determine actual payrolls.

KEMI will contact you and request information for a routine audit. The audit may be conducted by a KEMI representative or a third party hired by KEMI. Audits may be conducted in the field at the location where the business records are maintained, by mail or online.

Audits are completed by verifying operations, reviewing payroll records and allocating payroll between applicable classification codes. The auditor will review your information and may ask additional questions. KEMI will send you a summary of the audit results. 

Once the audit is completed, KEMI will either bill the policyholder for additional premium if the actual exposure is more than the estimate or issue the policyholder a refund if the actual exposure is less than the estimate.