What is an Experience MOD Rating?
Experience modifiers (Emod's) are an objective methodology of rewarding or penalizing a business based on premium and claims history. The mod rate assigned to a business will be universally applied to policy pricing regardless of which insurance company quotes the coverage. All new businesses start with an experience modification rate of 1.00 because they have no prior premium or claims to merit an Emod. The factor compares your loss data to other employers in the same class codes, and is expressed as a credit or debit on your policy.
Your Workers' Comp premium will go up and down based on your EMR rating.
HOW TO LOWER YOUR WORKERS' COMP PREMIUM
APEX is partnered with Employers' Risk Management Association to bring you all the tools to keep your costs low and mitigate all business risk. You can save $1500 to $3500 per employee per year with their program.
How to Find Your Experience Mod Rate
The NCCI (National Council on Compensation Insurance) is a group that calculates Experience Modification Factors for companies across the United States. Some states have their own rating bureaus. For example, New York and New Jersey have the NYCIRB & NJCRIB
Lowering the Experience Modifier (X-Mod) for your Workers' Comp can significantly reduce their insurance premiums.
Establish comprehensive safety programs to reduce workplace injuries. Regular training and safety audits can help maintain a safer work environment.
Develop return-to-work programs to get injured employees back to work as soon as they are medically able. This can reduce the cost of claims and improve the X-mod.
Ensure all claims are reported accurately and promptly. Verify the accuracy of the X-Mod calculation as calculated by the insurance carrier.
Actively manage claims to ensure they are resolved quickly and efficiently through the insurance carrier and medical providers.
EXPERIENCE RATING ADJUSTMENT (ERA)
Utilize ERA programs that adjust the impact of small medical-only claims on the X-mod, potentially lowering it.