3 Key Takeaways from 2020’s Premium Audit Conferences

3 Key Takeaways from 2020's Premium Audit Conferences

3 Key Takeaways from 2020’s Premium Audit Conferences

Our staff have been busy continuing their education and gathering the latest insights from recent Premium Audit Conferences. Here’s a round-up of their lessons learned from these conferences.



These sessions focused on the following topics:  Best practices for virtual premium audits, COVID-19 payroll wages for worker’s compensation and general liability policies, New or proposed class code changes and wording for worker’s compensation and general liability policies and Non Premium Audit COVID-19 topics such as a Business Income losses, Directors and Officers losses, market capacity and insurance carrier financial strength.


      1. We learned that at least 10 states and also the NCCI have different effective and expiration dates, definitions of what is considered COVID-19 wages and requirements of how the insured must record these wages. What is required, however, is that the insured must isolate COVID-19 furlough wages in their payrolls and how it must be reviewed during an audit. The lack of division of payroll will preclude the reclassification of payroll into 0012, 1212, 8873, etc. Some states had these temporary provisions sunset at the end of the year but this is now changing and now appear to be open-ended.
      2. We also learned that California is adding class code 8871 effective 1/1/21.
      3. For sales-based policies, PPP revenue should be easy to identify but ISO has only proposed but not adopted wording to exclude this exposure.


SML Capital Advisors is staying on top of these changes and how they effect premium audit. Let us know how your business is adapting to today’s challenges, hopefully we can provide some guidance for your current situation