Experience Modification Factors On The Rise

By November 13, 2013 August 22nd, 2018 Uncategorized

Workers’ compensation claims are “split” into primary and excess losses for calculating your experience modification.  The limit for the primary losses is being raised from $5,000 to $10,000 which means the first $10,000 of each claim is weighted more heavily in the calculation.  We have seen mods jumping anywhere from 20 to 40% on recently reviewed calculations.

Since your mod is based on 3 years of experience, here are some things you could do today to positively impact future costs:

  • Don’t hire your next workers’ compensation claim.  Use background and reference checks, require post offer physicals, and implement detailed job descriptions outlining the physical requirements of the job.
  • Build a culture of safety.  Have a formal safety orientation for new hires, retrain employees returning after an injury, and have regular and ongoing communication regarding workplace safety.
  • Proactively manage your claims including prompt reporting and implementing modified duty Recovery at Work programs.

For more ideas on how to save money on your workers’ compensation premium, call The Flanders Group at 800-462-6435