When it comes to calculating your company’s workers’ compensation premiums, there are a few important parts. One of those parts is the experience modification or the ex mod. When you have a basic understanding of the ex mod, you can actively work towards lowering your premium costs.
What Is Your Ex Mod Rate?
The National Council on Compensation calculates your ex mod rates. To calculate your ex mod rate, there are several factors but one of the most important factors is how many open claims your company has open at one time.
Can You Reduce Your Ex Mod Rate?
Fortunately, any company can reduce its ex mod rate. To reduce your rate, you need to track the factors that led up to the accident. As soon as someone makes a claim, you need to investigate the claim. It is up to you to correct any hazards as soon as possible. Likewise, when you investigate, you can discover fraud quickly.
No matter how many claims you have, you need to set safety goals. Show that you are actively putting your company’s safety first. Create a written safety program to teach employees how to mitigate risk.
To lower your ex mod rate is possible. When you pay little attention to your rate, you could wind up paying higher premiums than necessary.