Mail Audit Help: Workers Compensation

Questions about Workers Compensation mail audit forms? We can help. If you're ready to get started filling out your audit form, you can go directly to the instructions.

Q. What is a mail audit and why did I receive one?

A. Workers Compensation premiums are based on payroll estimates you and your agent provided prior to the policy inception date. Your premium is calculated based on these estimates and certain other criteria such as classifications appropriate to your business operations. At the end of the policy period, the insurance company is required to adjust the estimates based on the actual amounts of payroll in these classifications during the policy period. This information is used to determine your final Workers Compensation premium.

The form you received is called a mail audit. You can complete the audit at your convenience prior to its due date. Audits are typically done this way on smaller premium policies with few rating classifications.

Q. The cover letter I received indicated that there may be certain states that have special rules that may impact what I report. Could you please explain what this means?

A. Since you are reporting total payroll by classification, it would benefit you to know if there were certain deductions that would reduce those reportable amounts. Certain states have adopted rules that impact what you should report. See our State & Special Reporting Rules for more details.

Q. What happens if I do not send back a completed mail audit?

A. We will estimate your premium and this could result in an increase of up to 150% of your original premium. An accurately completed mail audit form allows Safeco to charge the correct premium for the protection provided to your business.

If you have additional questions, please contact your agent. You may also call the Premium Audit Processing Center at 1-800-422-6340 for assistance.