Reducing the Cost of Workman’s Compensation Insurance
Workers compensation premiums are calculated based on a number of factors including:
- Occupational risk level or "class code"
- Gross wage calculations
- Most importantly your experience modification factor "e-mod" or “mod”
The best way to reduce the premiums you pay for workers compensation is to have a long-term commitment to a safe workplace. If you are able to create a safe working environment and reduce or eliminate your workers compensation claims you will ultimately improve your workers compensation modifier or "mod". This is the single greatest opportunity you have to reduce your workers compensation premiums in the long run.
The purpose of a workers compensation modifier or “mod” is to recognize the differences between individual businesses in the same industry. Experience rating is a procedure that utilizes pass insurance experience of the individual policyholder to forecast or predict future losses. Individual companies claim history is compared to the average company in the same classification or using the same "class code". The differences are shown by increasing or decreasing your experience rating factor. A workers compensation modifier or “mod” of 1.00 is considered to be the average for the industry. As the workers compensation modifier increases or decreases your workers compensation premiums will do the same.
McGrath Insurance Group works with their customers to help them understand how losses and safety measures will ultimately impact their workers compensation modifier. We will work in partnership with the workmen’s compensation insurance company that best fits your business to develop a safety program when needed or recommend specific measures that can be taken to improve the safety of your workplace.
