Your experience modification factor or mod is the single most important controllable factor of your workers comp pricing. Depending on your experience mod you could either be paying 50% less than your competitors for workers comp or as much as 300% MORE. Controlling your experience mod is the best way to lower your workers comp premium.

Companies that actively work to control their mod can see HUGE savings on workers comp; below are several common myths regarding the experience rating system. By better understanding the system your company can reduce your workers comp premium dramatically.

Myth No. 1: My Experience Mod is based on my premium paid in and claims paid out.
This is perhaps the most common misconception regarding the experience rating system. Many businesses and insurance agents think that your experience mod is a calculation based on the premium the business paid in versus the claims paid in out in a given year.