💥 Don’t Get Hit with a Surprise Workers’ Comp Bill — What First-Time Buyers Need to Know

Imagine this:
You just started your business, got workers’ comp insurance, and you're feeling good knowing you're covered. Fast forward a year — and BOOM — you get hit with a surprise bill from your insurance company. Thousands in back pay. Why? Because your payroll was underreported — and now you have to make up the difference.

🎯 Here’s the truth most first-time business owners don’t know:

When you buy workers’ comp insurance, your rate is based on your estimated payroll — not actual payroll. At the end of every policy year, the insurance company does an audit to see what you actually paid your employees.

If you paid more than you estimated, you owe the difference. And yes, it’s legally binding.

🧠 Why this happens (and how to avoid it):

Most new business owners lowball their payroll — sometimes to keep the premium low, or because they genuinely don’t know what to expect. That’s totally understandable.

But here’s the smart move:

✅ Start with your best guess. Then update it.

Once your business starts rolling and you get a better idea of actual payroll, just contact your insurance agent and adjust the numbers mid-year. It’s quick, easy, and can save you thousands come audit time.

🚫 Don’t Let the Audit Catch You Off Guard

This kind of thing happens to small business owners all the time. But now that you know the system, you’re ahead of the game. Stay flexible, communicate, and treat your workers’ comp policy like a living document.

You’ve got enough to worry about — don’t let an avoidable audit bill be one of them.