top of page

Myth Busting the Experience Mod:

Start using your Mod as a Grade
 

Your workers’ compensation premiums are determined by a number called your experience modification rate, also called EMR, experience mod, ex-mod or simply mod.
 

The mod is calculated using employer data such as payroll and the nature of their workforce, along with the frequency and severity of employee injuries over a period of multiple years.
 

The mod is expressed as a number between 0 and 2.0, with 1.0 representing the average for injuries and
claims in a particular industry. The lower the mod, the lower an employer’s work comp premiums are. The lower the mod, the better my credits are.

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MYTH:


Any mod below 1.0 is considered “good” because it is better than average
 

FACT:


Think of 1.0 as a “C” grade in school—average but not the best possible outcome
 

The Experience Mod as a Grade

If you think about your experience mod as a grade in school, it is easier to understand. A mod of 1.0 is average, which would be a C grade. Though you want to strive for above average (better than a C), that’s still not the best you could do. An A grade is the best you could do.​

The Minimum Mod (A Grade)

​An A grade mod is different for every organization, as every company has a unique minimum mod, which represents what the experience mod would be if there were no injuries or claims during the rating period.

 

 

 

 

 

The example organization’s mod is .90, which seems good, is below average, and represents a savings  of $10,000 in premium versus the average.
The minimum mod is .70 ($70,000 in premium). That means there is another $20,000 in potential
savings on the table.

Do you know your Minimum Ex-Mod?

Is your workers Compensation eating into your Profit?

Download our example formula to see if you are losing profit - click here

Let's fix your Ex Mod Now complete the form below check the Fix My Experience Modification and send.

 

 

Learn more about protecting your business


Multi choice
Experience Mod Below 1.0

Indicates the company has fewer or less severe claims than the industry average


RESULT:



Lower Work Comp Premiums
Experience Mod Above 1.0

Indicates a company has more frequent or more severe claims than the industry average


RESULT:



Higher Work Comp Premiums
EXAMPLE
Actual Mod = .90 ($90,000 work comp premium)
Industry Average = 1.0 ($100,000 work comp premium)
Minimum Mod = .70. ($70,000 work comp premium)
bottom of page