What is My Worker’s Compensation Experience Modification?
by R&I Consultants
Does your current commercial insurance consultant know the answer to your question, “What is my worker’s compensation experience modification, and how is it calculated?” If not, it may be time to switch to Risk & Insurance Consultants! Here, we can answer that question and many more about workers’ compensation and other types of insurance coverage your business may need.
Now for the answer. An experience modification is the adjustment of your annual premium based on previous loss experience. Your premium will either increase or decrease based on this experience.
An employer with average experience has a modifier of 1.0 and would pay the manual premium. An employer with poorer loss experience has a modifier greater than 1.0 and would pay more than manual premium. On the other end, an employer with good experience would have modifiers below 1.0 and would pay less than the manual premium.
Now for some advice. To get discounts off of your premium, consider applying to become a drug free workplace. There are rules that must be followed as part of the certification. However, in addition to the premium savings, a certified drug free workplace generally will promote a safer environment.
Additionally, don’t try to save by not including yourself or other owners on the workers’ compensation policy. This is not a savings at all! For instance, if you are injured during work, your personal health or auto insurance may not even cover the claim if it is confirmed to be a work related accident. Instead, you should take advantage of the same coverage you provide your employees to protect your personal financial security.
See, in just one post, we answered your question and even gave you some tips! If you want to find out more, just call us at 404-459-5975 or visit Risk & Insurance Consultants on Facebook.