Find the overcharges in your clients’ premium audits.
Penniback Comp reads a contractor’s workers’ comp premium audit worksheet and flags where the premium was overcharged. Each finding cites the rule it relies on and the page it came from, so you can review it and take it to the carrier.
Premium audits can overcharge, and small accounts rarely get a second look.
After a workers’ comp policy ends, the carrier audits the contractor’s actual payroll and recalculates the premium. The worksheet that comes back depends on many judgment calls: which class code each worker belongs in, which kinds of pay count toward premium, and how payments to subcontractors are treated. Each of those calls can go against your client.
Larger accounts often have someone who reads the audit line by line. Small contractor accounts usually do not. The review takes hours, the worksheet is hard to read, and the bill gets paid as issued.
A premium audit compares the payroll estimated at the start of a policy with the actual payroll for the term, and the premium is adjusted to match.
How it works
- Upload. You upload the premium audit worksheet and supporting documents for one policy.
- AI reads. A language model extracts class codes, payroll, exclusions, and subcontractor details, and records the page each value came from.
- Code calculates. Plain, tested code recomputes the premium. The AI does no arithmetic.
- A second agent verifies. A separate agent checks each finding against the source pages and the rule it cites. Findings that do not hold up are removed.
- You get cited findings. Each overcharge comes with the rule, the source page, and the calculation behind it.
Penniback Comp starts with North Carolina rules.
What it catches
- Misclassified workers. Payroll placed in a class code with a higher rate than the work supports, such as office staff billed under a construction code.
- Excluded pay that was counted. Types of pay the rules leave out of the premium basis, included anyway.
- Insured subcontractors billed as payroll. Payments to subcontractors who carried their own coverage, counted as if they were your client’s employees.
Synthetic example. Not a real account or audit.
Audit worksheet, page 3
| Code | Classification as billed | Employee |
|---|---|---|
| 5645 | Carpentry, residential | Framing crew |
| 5645 | Carpentry, residential | Office manager Flagged |
| 8810 | Clerical office | Bookkeeper |
- Finding
- Office payroll billed under a construction code.
- Cited
- The classification rule relied on, and worksheet page 3.
- Checked
- Confirmed by a second agent against the source page.
What it never does
- It never flags undercharges. Penniback Comp looks only for places where your client was charged too much.
- It never guesses a number. If a value cannot be read from the documents, the finding says so instead of filling the gap.
- It does not give insurance or legal advice. Findings are material for you to review and raise with the carrier. The judgment stays with you.
Request a pilot
Penniback Comp is opening a pilot for insurance brokers, starting in North Carolina. Tell us about your small contractor accounts and we will follow up.
Opens your email app, addressed to ethan@penniback.org.