The workers compensation experience rating plan is designed to either increase or decrease your company’s workers compensation insurance premium based on loss experience.  This gives you an opportunity to manage your own expenses. The workers compensation experience mod is calculated based on payroll and work comp claims.   Whether the claim is a medical claim or an indemnity claim also impacts your mod.  Employers are rewarded for providing light duty and return to work programs. This means there is more of a credit put on medical only claims and will control your experience mod at claim time.

Generally, a company with a mod of less than 1.0 will receive a credit on their premium while a mod of greater than 1.0 will cause premiums to increase.  Therefore, it is important to be aware of the claims that are being submitted and it is recommended that safety requirements be in place to avoid/minimize workers compensation claims altogether.

The Starr Group has many resources to help control your workers compensation costs.  For more information or questions contact us today.