Questions You Should Be Asking Your Agent
HOW OFTEN DO YOU COMPLETE A WORKER'S COMPENSATION EXPERIENCE MOD AUDIT?
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.
WHAT CAN YOU DO TO IMPROVE YOUR EXPERIENCE MOD?
Appoint a proactive agent that knows the in's and out's of work comp. Sometimes the simplest 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 entered erroneously.
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 blames your past year’s big claim as the culprit.
With over 40 years 0f experience under our belt, Professional Insurors knows the ins and outs of the commercial insurance industry. There’s so much to keep up with and so many facets, but our knowledge and expertise makes us the best in the business.
Give me a call if you would like to learn more.
