What is an Experience Modification?

April 28, 2020

Understanding your experience mod is essential for managing your cost of workers’ comp since it can significantly impact your premiums in painful or helpful ways!

Basically, your experience mod is calculated by comparing the past 3 years of your companies claims history to other businesses in your industry.

If your companies’ actual claims match the expected claims for your job classifications and payrolls, your experience mod will be a 1.0. If your experience mod is lower than 1.0, this means your businesses claims history is better than expected for your industry. This is awesome as it makes your eligible for additional discounts.

For example, let’s say your experience mod was a .65, you would then pay 35% less than the average company in the industry, before any discounts and dividends for which you may qualify.

Unfortunately, the opposite of this is also true. If a company’s claims actual history is higher than the expected, then the experience mod would be greater than 1.0. The company would pay additional premium.

Leveraging your experience mod is one of the most effective ways to reduce your premiums. Since your e-mod is calculated based on your past 3 years claims history, the best way to control your mod is by and focusing on employee safety and managing your claims with professional assistance. Efforts to ensure that you achieve zero injuries, by being laser focused on safety, will not only lower your experience mod and premium for years to come but you are also creating an environment for your employees to thrive and productivity is maximized!

Make sure employees go home with the same health with which they arrived.

When it comes to managing your claims, there many options. Companies, like Friedlander Group, offer comprehensive services to improve safety and reduce claims. One technique we use to lower premiums is encouraging a strong return to work program. Another is to read “Safety and Workers' Compensation Strategies: To Unleash Productivity and Profits" https://www.amazon.com/Safety-Workers...