Do you know what your experience modification factor (mod.) is?

I am surprised at the number of business owners I speak to that do not know, let alone understand, the impact their experience mod has, not just on their workers comp premium, but the premium on their entire account.

Simply put, a workmen’s comp experience modification is the ratio of your actual workers comp loses to losses expected of an employer in your industry.  An experience mod of less than 1.00 means your loses are fewer and/or less severe than the average company in your business classification.

On the other hand, a mod of 1.0 and above means that your claims frequency and/or severity is at or above average.  The experience mod is a determining factor in your workers comp insurance premium.  If your company has an experience mod of 0.85 then you are receiving a 15% discount from the base rate.

However, the experience mod can also affect the amount of discount you receive on the rest of the package.  When your underwriters are trying to obtain a quick snapshot of how well a company is run, therefore how profitable a company they may have to insure, one of the first pieces of information they require is the experience mod of the company.

If your experience mod is greater than 1.0, you should be taking active measures to reduce your mod.  The Priority Risk Management Review is the tool we use to help you lower your mod.

If you need help lowering your mod, Click Here!