Understanding Your Workers’ Compensation Experience Modification Factor

A key to understanding your workers’ compensation premium is the experience modification factor, also known as your mod. Understanding your company’s mod and the data used to obtain it helps you identify ways to minimize your workers’ compensation premium.

A mod analysis can provide valuable insight into your business operations and workers’ compensation losses. If you have a basic understanding of how a mod is calculated, you can use a few simple equations to gain a deeper understanding of the factors contributing to your number. To learn more about your company’s mod and mod analysis visit the links below.

       Commonly Asked Questions on Your Modification Factor

       What is the Modification Factor Experience Rating Period?

       Determination of the Minimum Mod

       Determination of the Controllable Mod

       Ratio of Actual to Expected Losses

       Specific Loss Sensitivity

       Aggregate Loss Sensitivity

       A Note about Primary and Excess Values

       How Can You Control Your Modification Factor?