LCI Workers’ Comp is committed to the success of our policyholders, and we offer significant savings for small businesses whenever possible. But the true value of LCI is our willingness to provide incomparable service—to agents and policyholders alike. Now, the top 10 most popular questions posed by policyholders:
How do I make a payment?
You may mail your payment using the invoice you received from LCI, drop off your payment at our Northshore office, or complete an online payment. If you plan to make your payment in person, please call first to ensure that the office is open. Our number is (985) 612-1230.
What is a premium audit, and when do they occur?
The primary purpose of a premium audit is to calculate your final premium. When your policy was issued, the premium was an estimate of an exposure basis (payroll) multiplied by a rate. In the audit, LCI will examine your records to establish the actual exposure basis and make sure that the correct classification codes are used in determining your final premium. Because the original premium was an estimate, the audit may result in a change of premium and/or classifications for your business. You will be contacted about completing a premium audit after the policy expires or is canceled.
How should I prepare for a premium audit?
Having the appropriate records available for the audit will allow the auditor to complete the process smoothly and accurately. Two types of documents are required to complete your audit: A primary source showing payments made to labor during your policy period and a secondary source, such as a tax document that is used to verify the primary source.
- The primary source document should match as closely to your policy period as possible. It is
acceptable to deviate slightly from the policy period.
- The secondary source documents may not line up with your policy period.
If your policy period falls in the middle of the month, simply provide the most recent four quarterly (or annual) tax reports that most closely aligns with your policy period. For physical audits, you will be contacted by letter or phone to schedule a date for the audit appointment and you will be requested to provide certain records. For self-reporting audits, a form will be sent to you to fill out and return with the appropriate documentation. Some policies that meet certain criteria may be eligible for a telephone audit. In all cases, accurate records that are complete and well organized make the audit process much easier. Your advance preparation will help the auditor quickly find what he or she needs and will require less of your time for questions and/or clarifications during the actual audit. Payroll records used for an audit should be organized to clearly show payroll by:
- Policy period
- Job duties (List each type of job separately, i.e. clerical, sales, etc.)
- Separating overtime from regular pay
What if I don’t agree with my audit?
If you do not agree with audit, you may dispute the results in writing with the proper supporting documentation and reason for contesting the audit. Any dispute that is not accompanied by supporting documentation will be rejected.
What makes my premium go up or down each year?
Premiums are calculated based on the amount of payroll a company pays out to its employees and/or subcontractors. Because these numbers change each year, our auditors work hard to determine the accurate premium due. It should be noted that there is a minimum premium of $1,500 due, regardless of payroll. This minimum is subject to change.
But what if I had no payroll during the policy period?
All LCI policies are subject to the minimum payroll of $22,000 or a minimum premium of $1,500, whichever is greater.
If I can’t pay my audit in one lump sum, can I pay in installments?
Yes, contact Mallory Weaver at (985) 612-1230, and they can work with you to come up with a payment plan to suit your budget. Not many workers’ comp insurers will go this far to help keep their clients current and their employees protected. LCI will.
What do I do if I receive a “Notice of Cancellation Letter”?
Since most cancellations are triggered by non-payment, simply bringing your account current may solve most issues. To find the root of your cancellation, notify your agent or call (985) 612-1230 and our staff will work to quickly resolve the problem with as little inconvenience as possible.
Do I really need workers’ comp insurance?
Yes. If you’re a Louisiana employer or hire subcontractors, you are required by Louisiana state law to carry workers’ comp insurance on each employee as well as any subcontractor who does not have their own workers’ comp policy.
Do you offer policies for most kinds of business?
Yes. Though the LCI Fund was founded in 1989 with a singular focus on construction and related industries, today we offer workers’ comp programs to a diverse range (businesses we write) of small- and medium-sized businesses throughout Louisiana. Our workers’ compensation programs are available exclusively through our independent partner agencies. Call (985) 612-1230 to learn more.