Lower Your Workers Comp EMOD
What is an experience modifier?
Your Experience Modifier, or EMOD, is a number that represents how much you are paying compared to the average workers comp premium. The formula for determining your EMOD is pretty simple:
- Divide the actual premium costs by projected premium costs
- Take this number and add 1 (so it becomes a 2-digit number)
Your emod can be anywhere between 0 and 10, where 10 means you're paying more than twice as much in premiums per claim as everyone else on average. You don't want that! A lower emod means lower premiums—and less money out of pocket.
Making your business safer.
There are plenty of ways to avoid getting hurt on the job. Here are a few:
- Clear up spills immediately.
- Keep floors dry, clear of clutter, and free of obstructions.
- Fix problems with stairs, steps, and ramps as soon as they arise (and before an accident happens).
- Keep cords and cables out of walkways so they won't trip anyone who walks by them (or trip over).
- Use ergonomic equipment (like comfortable chairs) instead of hurting yourself by doing much heavy lifting or bending over all day long.
- Use ladders properly by placing them with adequate support under them so that you don't fall off while using them for their intended purpose—you know what I mean?
What if my experience mod is too high?
What if my experience mod is too high?If your experience mod is too high, don't worry. There's no need to panic or worry about a decrease in your benefits. You can work with your agent or broker to identify ways to lower your XMOD. If you were misclassified, you may want to ask for a review or file an appeal on the XMOD, and if that doesn't work, then file an appeal with the Bureau of Workers Compensation (BWC).
Managing your claims.
- Hire a workers compensation claims manager.
- Use a managed care organization.
- Use an occupational health clinic and/or nurse practitioner in conjunction with your medical provider(s).
- If you have a large enough group of employees, hire a Third-party administrator (TPA) to handle your claims and billing processes.
Your EMOD affects your workers compensation rate, so it's essential to keep the rating as low as possible.
Your EMOD affects your workers compensation rate, so it's essential to keep the rating as low as possible.How? By keeping your workers' comp premium as low as possible! To do this, you will want to work with a broker who can find you the best insurance rates for your business. If you're interested in lowering your EMOD, then you'll need to:
- Keep records of any injuries that happen on the job and;
- Make sure that your workplace is safe for employees by installing safety equipment and making specific hazards are removed from the workplace.
