On January 1, 2017, the NCCI (National Council on Compensation Insurance) approved a Workers' Compensation policy endorsement called an Audit Noncompliance Charge (ANC) that allows insurance companies to charge up to 2x (varies by state) the originally estimated premium when a policy holder is non-compliant with a workers' compensation policy audit request.

The Audit Noncompliance Charge is intended to compel policyholders to comply with the requirements necessary to perform a final audit on a workers compensation policy following policy expiration.

In addition, failure to cooperate with the audit may result in a cancellation of workers' compensation coverage. Audit non-compliance will disqualify an employer from obtaining coverage from any insurance company until the outstanding audit is completed.

We encourage you to finalize your workers' compensation policy audit as soon as possible in order to avoid potential additional charges.