Instructions for General Liability Mail Audits

Use the information below to help you fill out the specific sections of your audit form.

If you have any questions, please call our service center at 1-800-422-6340. Definitions of terms used in these instructions can be found in the Premium Audit Glossary.

Completing Your Audit Form

Step 1 – Description of Business Operations
Step 2 – Classification Section
Step 3 – Contact Information

Step 1 – Description of Business Operations

Please present a clear picture of your business operations. If you have multiple entities, please describe each one. If there isn’t enough space, please write a full description on a separate sheet of paper and attach it to the document. Here are some examples:

Entity

Check the box that represents your organizational structure.

Owners/Officers Names	List all executive officers, owners, and partners.
Title	State the corresponding title for each person.
Type of Work Performed	Please be specific. Avoid terms such as "manager" or "administration". Describe the actual work duties performed by each person. For example, indicate if an individual is a supervisor of a work crew, in charge of outside sales, or has office duties. If the individual splits duties between operations, give the percentage of time spent in each activity.
Owners/Officers Gross Payroll	Report each person's total gross payroll. This includes payroll, commissions, bonuses, pay for overtime, piece work, holidays, vacations, and sickness, value of meals and lodging, and other substitutes for money.

Back To Top

Step 2 – Classification Section

When you purchased your policy, you estimated the original premium (deposit) based on projected payroll, sales, total costs, number of employees, or other exposures (premium bases). We’ve assigned various class codes representing these exposure bases to your business operations. We’ve listed definitions for each of the premium bases below.

There are boxes on your mail form that provide the class codes used on your policy and descriptions of those class codes. Please report the totals for each class code for the policy term in the columns on the right.

If parts of your business operations are not described by these class codes (such as operations started during the policy term), please provide the total amounts for these operations.

Below are links to definitions and tables that provide additional help in filling out your mail audit form. Click on a link for more information.

Definitions

Total Gross Payroll
Total Sales
Total Cost
Miscellaneous Bases of Premium

Total Gross Payroll

This is commonly called remuneration. Report total gross wages, commissions, bonuses, pay for overtime, piece work, holidays, vacations, and sickness, value of meals and lodging, and other substitutes for money. Do not make deductions for 401k or similar tax-reducing plans.

If you are reporting payroll for Washington State employees, only include a maximum of $600 paid per week on an average (including vacation and sick-leave weeks) per employee. The maximum reportable per employee is $31,200 for a full year. This limitation applies ONLY to Washington State payroll.

If you are reporting payroll for Louisiana State employees, onlyinclude a maximum of $300 paid per week on average (including vacation and sick-leave) per employee. The maximum reportable per employee is $15,600 for a full year. This limitation applies ONLY to Louisiana State payroll.

Also, if you lease your employees, include their payroll as well. The leasing company does not provide direct General Liability coverage for the exposure created by your leased employees. This is because those employees are under your direct supervision and control.

Please report the TOTAL GROSS PAYROLL for the policy term for each class listed below:

Class Code(s)	These are the General Liability classes assigned to your business operations. (Make sure you check all pages, as some tables carry-over or start on the reverse side).
Class Code Description	This is the corresponding description for each classification on the policy.
Total Gross Payroll ** (incl. overtime) Do Not Include Officer Gross Payroll	Report total gross wages, commissions, bonuses, overtime pay, pay for holidays, vacations and sickness, payment for piece work, value of meals and lodging, and other substitutes for money for all employees EXCEPT OFFICERS. Do not make any deductions for 401K or similar tax reducing cafeteria style plans.
Overtime Wages Only (If double time please indicate)	Report total overtime wages for each class code listed. We will deduct the premium portion of those wages from each classification total.

** Subcontractors / independent contractors who do not carry their own insurance and that work under your direction and control are to be included as your employees. Their earnings or labor costs are also to be reported in this section.

Total Sales

This is the gross amount of money you charged for goods or products sold or operations performed, including lottery and video lottery commissions. You may exclude certain items from what you report under "gross sales." You must show exclusions from gross sales separately in your records to be valid. Excludable items include: sales or excise taxes, credits for repossessed merchandise and products returned, allowances for damaged goods, freight, finance charges, and royalty income from patents or copyrights.

Please report the TOTAL SALES for the policy term for each class listed below:

Class Code(s)	These are the General Liability classes assigned to your business operations.
Class Code Description	This is the corresponding description for each classification on the policy.
Total Gross Sales (Do not include sales taxes)	Report total gross sales less sales or excise taxes, credits for repossessed merchandise and products returned, allowances for damaged goods, freight, finance charges, and royalty income from patents or copyrights.

Total Cost

This is the total cost of work that the insured subcontractors performed. This includes all material costs associated with the work that the subcontractors perform, whether the materials are supplied by the subcontractor or by you.

Other Miscellaneous Bases of Premium

We’ve listed several other premium bases individually below.

• Gallons: Enter the total number of gallons sold for the policy term.
• Per Each: This involves units of exposure. Check your specific policy for your basis of premium (e.g. Per Person, Per Game, Per Member, Per Kennel, Per Exhibition).
• Per Camper Day: Premiums for camps are based on "each camper day." One camper, camping for one day, equals one camper day. Ten campers camping for one day, equals 10 camper days. A part of a day counts as one day.
• Per Student/Per Pupil: The per student basis are per school year. You must apply them to the latest average daily attendance figures filed with the proper school supervising authorities. You must compute the average daily attendance figures for day sessions only, not including summer sessions.
• Per Admission: Admissions means the total number of persons, other than employees of the insured, admitted to the event or events on the premises on paid admissions or complimentary tickets.
• Per Number of Rounds Played: Report the actual number of rounds played on the course during the policy period. If you have a breakdown between nine- and eighteen-hole rounds, please provide those totals separately.
• Sales: This is the gross amount of money you charged for goods or products sold or operations you performed, including lottery and video lottery commissions. You may exclude certain items from what you report under "gross sales." You must show exclusions from gross sales separately in your records to be valid. Excludable items include sales or excise taxes, credits for repossessed merchandise and products returned, allowances for damaged goods, freight, finance charges, and royalty income from patents or copyrights.
• Units: Enter the count of exposures, such as apartment units. An example of a unit is a single room or a group of rooms intended for occupancy, as separate living quarters by a family, a group of unrelated persons living together, or a person living alone.

Please report the TOTAL COST paid to all insured subcontractors for the policy term:

Class Code(s)	These are the General Liability classes assigned to your business operations.
Class Code Description	This is the corresponding description for each classification on the policy.
Total Cost (Including the cost of any materials provided to or by insured subcontractors)	This is total cost of work performed by insured subcontractors including materials. This includes all material costs associated with the work that the subcontractors perform, whether the materials are supplied by the subcontractor or by you.

Please report the total amounts of each class code for the policy term (i.e.: number of units, per gallon, per each, per employee, commissions, gross sales or receipts, etc). If reporting gross sales,please do not include sales taxes:

Class Code(s)	These are the General Liability classes assigned to your business operations.
Class Code Description	This is the corresponding description for each classification on the policy. The premium base is stated after each classification description.
Total	Report the total for each classification listed.

Back To Top

Step 3 – Contact Information

Please provide your contact information, including your email address, then sign and date the form.

We’ve also included the Premium Audit Release of Information form. Safeco does not share the audit worksheets with your agent without your signed consent. We will keep your completed forms on file should your agent request a copy of your worksheets.

Back To Top