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Your experience modification factor, or mod, is an important component used in calculating your workers’ compensation premium. If you can control your mod, you can lower your costs.

[Understanding Your Workers’ Compensation Modification Factor]

Here are some tips that can help you make a difference in your bottom line!

  1. Investigate accidents immediately and thoroughly; take corrective action to eliminate hazards, and be aware of the potential for fraud.
  2. Report all claims to your carrier immediately. Alert the carrier to any serious, potentially serious or suspect claims. Frequently monitor the status of the claim, and communicate with the adjuster to resolve them as quickly as possible.
  3. Take an aggressive approach to providing light duty to all injured employees upon their release from treatment, to get them back to work in some capacity as soon as possible. Supervise light duty employees to ensure their conformance with any restrictions.
  4. In serious cases that involve lost time, communicate with the claims adjuster to demonstrate your interest in returning the injured employee back to gainful employment.

    [What’s driving your MOD?]

  5. Set safety performance goals for those with supervisory responsibility. Success in achieving safety goals should be used as one measure during performance appraisals.
  6. Develop a written safety program, and train employees in their responsibilities for safety. Incorporate a disciplinary policy into the program that holds employees accountable for breaking rules or rewards them for correctly following safety procedures.
  7. Frequently communicate with employees, both formally and informally, regarding the importance of safety.
  8. Make safety a priority – senior management must be visible in the safety effort and must support improvement.
  9. Evaluate accident history and near-misses at least monthly. Look for trends in experience, and take corrective action on any frequency issues first.
  10.  Hire RiskSOURCE Clark-Theders to ensure success.  We have two risk analysis tools (IQRM and ModMaster) designed to help with your workers comp modification factor.

Almost every business has room to improve their mod and, in turn, save on premiums.  With our risk analysis tools, we can identify what is affecting your current mod rating and we can pinpoint cost drivers, such as frequency or severity, and develop specialized solutions specific to your business needs.

Reach out to your RiskSOURCE contact to learn more or email me and I’ll help get you on the path to reducing risk and saving money!


Lisa Fleenor

Client Relations Manager

RiskSOURCE Knoxville


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