Premiums and Audits



Required Payroll Information

In order to begin the renewal (new business) process, you must submit your total payroll for each assigned workers’ compensation classification code. Your premium auditor will assist you in assigning the proper classification code(s) for your specific operation. State agencies are issued fiscal year policies, July 1 to June 30. Cities, counties, and municipalities are issued calendar year policies, January 1 to December 31.

Premium Calculation

Your premium – the price you pay for workers’ compensation insurance – is determined by applying the ¹rate for a classification code to the amount of your payroll in that classification. SAF adheres to rules, regulations and standard set forth by the National Council on Compensation Insurance (NCCI).

¹Per $100.00 of Payroll

Manual Premium Calculation

The premium developed by all classifications is summed up. The total of this is your manual premium.

The Experience Modification Factor

“A method of adjusting the premium for a risk based on past loss experience for that risk compared to loss experience for an average risk.”

The Experience Rating Plan (E-MOD) is a merit-rating plan approved by SAF. The E-Mod computes the experience rating for each eligible employer based on classification, payroll and loss experience. The employer’s actual losses are measured against expected losses for the amount of payroll reported for a given period of time. The experience rating that results (either an increase or decrease in premium to be paid) is effective on the renewal date of the policyholder’s workers’ compensation insurance. Therefore an employer who reduces the frequency and severity of on-the-job accidents is rewarded by a reduction in premium.

An E-Mod of 1.00 represents the average losses for any given industry. A policyholder with an E-Mod below 1.00 will pay a lesser premium than average. If a policyholder has an E-Mod above 1.00 they will more than the average premium.

The experience period consists of three completed years of experience ending one year prior to the effective date of the modification. The annual premium must consistently average $4,500.00, or the first two years annual premium must total at least $9,000.00 .

If you need additional information on how Experience Modifiers are determined, please call your SAF Premium Auditor or 803-896-5800.

The Premium Audit Process

All workers’ compensation policies are subject to a premium audit to determine the Final Reported Premium. The premium audit is conducted at the end of the policy period. Payroll information is to be submitted within forty-five days after policy expiration. The audit may be conducted in one of the two manners:

Voluntary Audit – The insured submits the required information to SAF. Upon review of this information, the expired policy payroll exposure(s) will be adjusted and the expired premium will be finalized.

Physical Audit – Your SAF Premium Auditor will schedule an appointment with your agency. The purpose of a physical audit is not only to review your payroll records, but to also:
Review your overall operation
Review your classification codes
Provide any assistance in helping you understand your workers' compensation program

Upon completion of the premium audit, the current policy payroll exposures may be revised to reflect a more accurate estimate.

Drug and Alcohol-free Workplace Credit Program

A special premium discount is available for policyholders who establish a qualifying workplace substance abuse prevention program, to include random drug testing of all employees.
If you have any questions regarding the Drug and Alcohol free Workplace program, please call your SAF Premium Auditor or 803-896-5800.

Volunteer Workers and Students

Coverage may be provided for qualified volunteers and students. Eligible volunteers are as follows:

  • Firefighter,

  • First Responder,

  • Rescuer,

  • Ems,

  • Diver,

  • Auxiliary Police Officer,

  • Elected Or Appointed Official

Coverage may be provided for high school, state technical schools, and state supported colleges and universities while engaged in work study.

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