Workers Compensation Experience Modification - The Basics

Simply put, your workers' compensation experience modification is the ratio of your actual work comp losses to the losses expected of an employer like you. The calculation considers your employment classification and your payroll in the comparison.

A mod of less than 1.00 means your losses are smaller and less frequent than average. A mod of 1.00 and above means that you are average or above average.

The lower the mod the lower your premium. Work comp policy premium is determined by multiplying your payroll by the rate per $100 your insurance company charges. The resulting number is multiplied by your experience mod.

If your mod is .85 you are saving 15% on your premium. Conversely, if your mod is 1.15 your paying an extra 15%.


Frequently Asked Questions:

Who calculates the workers compensation experience modification factor?

The National Council on Compensation Insurance (NCCI) is a a not-for-profit rating, statistical and data management services organization. They are funded by a variety of workers' compensation insurance organizations and companies to act as a central source of workers compensation data . Part of their responsibility is the calculation of experience modification data. They receive claim and audit information from your insurance company and calculate your experience mod.

What data goes into the experience mod calculation?

The experience mod uses your loss data and your payrolls. The loss data is reported to NCCI at approximately the half-way point in your policy year. Losses include both amounts paid and claim reserves. Your payroll data comes from the audits performed by your insurance company at the end of every policy period.

What's the difference between your experience mod report and the report generated by NCCI?

Our report is designed for you. The NCCI report is designed for your insurance company. We take the data provided by NCCI and generate a report that outlines why you have the mod you have. We tell you what issues are causing your mod to increase and what you can do about it. We tell you the impact your losses have on your experience mod. Go Here For More Info On ModManager.

Which states use the NCCI experience mod report?

All except California, Delaware, Hawaii, Indiana, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Carolina, North Dakota, Ohio, Pennsylvania, Texas, Washington, Wisconsin, and Wyoming.

Explain the information in the experience mod report.

We can't do it any better than NCCI does themselves. Go HERE for their explanation.

 

ModManager Tool
The ModManager is a simple to use software tool you can use to review the components of your workers compensation experience modification. One simple tool to help you see and judge your success at controlling your employee injuries.

Customized Help With Your Workers Compensation Experience Mod
We can provide you with a simple, easy to understand report that explains to you why your experience modification factor is what it is. Are your losses to big? Are you having too many losses? Along with your report you get a phone consultation to help you solve the problems of your mod and workers compensation policy.

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