Workers Comp Experience Modification Factors NY, NJ, CT

Ever wonder about that mystery line item on your Workers Comp policy declarations page called Experience Modification or Mod factor?

This is actually one of the key factors in determining the cost of your Workers Comp insurance.  The Experience Modification factor uses an employers past experience to determine future losses.   It’s a multiplier calculated by the various State rating Boards or NCCI.  All businesses start out with a clean slate and have a workers comp experience modification of a 1.00 this is a neutral multiplier.   Those employers with little to no losses have a credit Mod or a multiplier below the 1.oo such as at .95 or .80. These credit Mods discount the Workers Comp policy.   Adversely those employers that have claims more frequently or have a single large loss will have a Experience Mod over  a 1.00 or a debit mod such as a 1.10 or a 1.30.  This is a penalty for past experience.

Workers Comp Experience Mod-Keeping it under control

Nothing controls a Workers Comp Experience mod better than a safe environment.  Its a good Idea for an business owner to go through a Workers Comp Experience Modification Factor evaluation once a year to make sure the Mod is free from errors.   A business owner should in this case know what the lowest possible Mod available in their class of business.  This will give that employer a good idea of where they are compared to the industry average Experience Modification verse employers with the best Mods.  Employers should know the factors that going in to the Make up of their Experience Mod. It’s a good Idea to have a Workers Comp professional come in and help you determine how your mod can be lowered to achieve the best possible out come eventually lowering your costs and increasing profitability.

If you are concerned about your Workers Comp Experience Modification Factor rating and it is affecting your business Contact Us.

Enforce can give you a full Mod Assessment, help you evaluate accuracy and help you pit policies and procedures in place to make sure you are getting the Maximum credit you possible can