Premium Audit Process

A Premium Audit can be a positive experience for your company because it may lower your premium. At Safeco, we do everything we can to make it as easy and efficient as possible for your business.

How It Works

Here’s how it works. At the start of every policy year, we’ll ask you for an estimate of your payroll or sales figures. When the policy year ends, we may do an inspection of your records to determine your actual payroll or sales figures. We’ll come to your location, or request that you mail us the information. From these details, we’ll calculate your final premium.

What We Audit

For policies rated on a payroll basis, like Workers' Compensation and some General Liability policies, we’ll review your payroll journal and state and federal quarterly tax reports.

For policies rated on a sales basis, like some General Liability policies, we’ll review your sales journal or general ledger.

How We Perform an Audit

First, we’ll review two sources of payroll or sales information to determine a gross payroll or sales figure. During this process, it’s important to have your operations manager present to answer questions. From this figure, we’ll allocate payroll or sales by class codes and apply the appropriate deductions. We’ll then review the results with you and, if requested, send you a copy of the audit report.