Myth No. 4: There is nothing you can do to control or lower your experience mod.
This is the most frustrating myth for employers - their experience mod goes up year after year and when they ask their agent/broker what they can do to reduce the agent simply says, "have fewer claims," and "wait for it to come down." While there is perhaps some truth to these statements there are MANY ways that employers can take control of their experience mod and reduce their workers comp cost.
By completely understanding the formulas behind the experience rating system, employers can effectively manage claims, reduce the impact of small claims, implement and effective return to work programs, implement a no accident certification program, explore the use of deductibles and loss sensitive program, as well as many other small changes that can lead to a lower experience mod.
The bottom line is that in order to remain competitive your business MUST control its experience mod. A lower experience mod can reduce workers comp insurance costs dramatically as well as position your business to be a fierce competitor, not matter what industry you are in. Lower operating costs are good for everyone. By working with an agent/broker or consulting company that can assist you in better understanding the system you will take advantage of the experience rating system and save on your workers comp insurance.
Zachary Stock, CRIS is a principal of Apex Risk Solutions a Denver-based risk management and insurance brokerage firm. Zach specializes in workers' comp program design and management. Contact Zach at (720) 988-4529 or at firstname.lastname@example.org