Questions You Should be Asking Your Agent


First things first, what is a Worker's Comp Experience Mod?  This modifier is a number that every business has.  Everyone starts out with a 1.  Over time, if you are having frequent claims then your mod will be going up as well as your premium.  But, if you monitor your mod, provide a safe work environment and have few comp claims, then your mod will go down below 1 and your premium will go down.

The modifier takes into account your particular industry and compares you against the industry.  So if your industry low is .75, and you are a 1.05, you are leaving 30% on the table.  Say your work comp premium is $10,000 before the modifier is plugged in.  At a 1.05 mod, your premium would be $10,500, but if you were at the industry low, your work comp premium would be $7,500.  That is a $3,000 swing that you can manage.  As a business owner that $3k is coming off your bottom line, and in today's economy every penny counts.

So what can you do to work on your EXPERIENCE MOD?  Appoint a proactive agent that knows the in's and out's of work comp.  Sometimes the simpliest of things can help.  Getting your employees back to work within 3 days of an injury.  After 3 days, work comp pays indemnity which drives the cost of the claim and your mod.  Also, checking up on your mod calculation.  Your experience mod is input into a system by a human.  What are human's notorious for?  Making mistakes.  The data used to calculate your mod could have been input wrong. 

Managing your experience mod could save you substantial dollars.  Is your agent doing this for you?  Or, when your work comp premiums go up, your agent simply says, "well, you did have a big work comp claim this year."

There is much more to monitor than what I have shared, give me a call if you would like to learn more.  Sean Leigh