What is an Experience Mod and how do I get one?
An Experience Mod, or Experience Modification Factor, is an important component in calculating the premiums on your worker’s compensation insurance coverage. Generally, the more injuries and worker’s compensation claims a business has, the higher their experience mod is and in turn, the higher their premiums become. Worker’s Compensation Insurance is purchased so that an employee’s wages can be paid for should an injury occur on the job. Essentially, the insurance company is not paying these wages for a business, but rather they are providing a way for businesses to finance the costs of the wages and costs of injuries. The Experience Mod is what determines at what rate a business “pays back” the costs of injuries and wages to their insurance company. Depending on how costly an injury is, “points” can be added to an Experience Mod, making rates higher.
