Experience Modification Rating

Experience Rating Modification (Mod): A factor that adjusts workers' compensation premiums based on a company's claims history.

Mod Calculation: Calculated by a rating bureau (e.g., NJ CRIB).

Mod Range: Typically starts at 1.0 and can go up or down.

Impact on Premiums:

• Higher mod = increased premiums

• Lower mod = reduced premiums

Basic Explanation:

• "Your experience rating mod is a number that adjusts your workers' compensation premium based on your company's past claims."

• "A mod of 1.0 is the starting point. If you have more claims, your mod will go up, and your premiums will be higher. If you have fewer claims, your mod will go down, and your premiums will be lower."

Emphasis on Safety:

• "Prioritizing workplace safety can directly impact your workers' compensation costs. A good safety record can lead to a lower mod and lower premiums."

Claims Management:

• "Effective claims management is also important. Promptly addressing and managing claims can help control costs and potentially improve your mod."

Example Scenario:

• "If a client's mod goes up at renewal, explain that it's likely due to a history of claims. Emphasize the importance of safety and claims management to improve their mod in the future."

Explainer Video

Check FAQ link: https://www.streetsmart.insurance/faq/understanding-your-workers-compensation-experience-rating-mod/

The experience rating mod is a crucial factor in workers' compensation insurance.

Staff must be able to explain the mod to clients in a clear and understandable manner.

Emphasis on workplace safety and claims management is essential for controlling workers' compensation costs.