A workers’ compensation audit is a process in which an insurance company reviews a business’s payroll and other relevant records. The purpose of this audit is to verify that the business is paying the correct premium for its workers’ compensation insurance, based on the actual employee classifications and the work performed during the policy period. This ensures that the business is neither overpaying nor underpaying for its coverage. Typically, the audit takes place after the policy term ends and may be conducted by mail, phone, or in person, depending on the situation.