A Workers’ Compensation Experience Modification Rating Factor (also referred to as an EMR, xMod, eMod, or Modifier) is a multiplier used to calculate a company’s workers’ compensation insurance premium.
It is a mathematical formula where a company’s actual losses are divided by the expected losses and is compared to other businesses similar in size and job types.
A modifier of 1.0 is considered to be the industry average. A modifier less than 1.0 is considered favorably and referred to as a credit mod, which means losses are better than expected, resulting in a premium discount.
A modifier greater than 1.0 is considered a debit mod, which means a company’s losses are worse than expected, and a surcharge is added to the premium.
Thus, the safer your workplace, the less chances there are for injuries resulting in a lower modifier and lower premium costs.
Modifier Rating = Actual Losses ÷ Expected Losses
Properly overseeing your workers’ compensation program can be complex and time-consuming. So, how does a business manage and monitor its modifier?
That’s why Avery Insurance Agency designed a unique program to help businesses control expenses at no cost to our clients.
We partnered with AcuComp, a division of NIAS, Inc. (National Insurance Application Systems, Inc.), a premier workers’ compensation cost control data system, to aid our clients in lowering workers’ compensation premiums.
This highly specialized relationship with AcuComp focuses entirely on reducing modifiers by actively auditing and securing reserve reductions on claims.
Our partnership also includes:
- Unit Statistical Filing analysis. This is when exposure, premium, and loss information for a policy is submitted by the insurance carrier to the Workers’ Compensation Rating Bureau so the upcoming modifier can be distributed. AcuComp audits this data to ensure its accuracy.
- Pursuing modifier corrections with the insurance carriers when errors are found.
- Providing modifier projections for clients to aid in forecasting premium costs for renewal.
Our 10-year partnership with AcuComp has yielded outstanding results for Avery clients with reserves being reduced by 67 percent and the corresponding modifier dropping an average of 36 points.
Managing workers’ compensation can be simplified.
As an independent agency, we are here to help you find the right coverage with the best terms, conditions, and pricing. Our dedicated team of insurance professionals works closely with our clients and company partners through a unique process to ensure your workers’ compensation program performs at its best.
Contact us to learn more about our worker’s compensation strategies to help lower your costs.