Workers’ compensation insurance can be a significant percentage of your total insurance cost. But there are ways to help reign in those costs. Workers’ compensation premium is based on a business’ experience modification (E-Mod) rating, which is a rating that businesses can influence. Understanding the factors that go into the rating can help you best manage your work comp costs.
Your E-Mod is calculated using three years of payroll, loss data and classification codes (used to differentiate various job duties done by employees in an industry), excluding the most recent expired policy year. While it will take time to improve your E-Mod rating, there are ways to do so through targeted improvements that will positively influence your work comp costs.
Knowing how your E-Mod rating impacts your workers’ compensation premium is the first step to controlling your workers’ compensation costs. Understanding how your E-Mod is calculated will allow you to continually work to improve the factors that influence the calculation. To learn more, contact your local risk and insurance professional or a member of our team.
Access all COVID-19 related articles to help your business respond to the pandemic.