Insurance is complex. Our firm delivers tens of thousands of insurance policies on an annual basis and I would predict that less than 1% of them are opened and read. Why? It is because insurance policies are confusing and in today’s fast paced business climate, business owners and company employees have much better (more profitable) use for their time. Sound about right? There is one exception...

If you want to control your insurance cost - understand your Experience MOD.

What is an experience MOD? It is a factor built into your work comp program that will make a $10,000 work comp claim cost your company over $35,000 in a 3 year period.

How is a mod calculated?

The process of calculating the experience modification factor is complex, but the underlying theory and purpose of the formula is straight forward. Your company’s actual losses are compared to its expected losses by industry type. The formula incorporates factors that account for company size, unexpected large losses and the difference between loss frequency and loss severity to achieve a balance between fairness and accountability.

How does my mod affect my premiums?

The mod factor represents either a credit or debit that is applied to your workers’ compensation premium. A mod factor greater than 1.0 is a debit mod, which means that your losses are worse than expected and a surcharge will be added to your premium. A mod factor less than 1.0 is a credit mod, which means losses are better than expected, resulting in a discounted premium.

Your focus is growing your business; my focus is preventing, mitigating & transferring your risk.