Experience Modification Rate Information

Published: 13th August 2009
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Are You Maximizing Efforts To Reduce Your Rates]?

Understanding your Experience Modification Rating and checking it regularly, plays a vital role in lowering your Work Comprates. It's also an good means to monitor how your loss prevention and control practices compares to to other businesses in your industry.

What is Experience Modification?

To put it simply, your Experience Modification Rate compares your workmans compensation claims experience to other businesses similar in size who operate in a similar industry. Most employers who have annual premiums in excess of $3,000 are given an Experience Modification Rating.

How is Your Experience Modification Rate Determined?

Every year insurance carriers report your class code, losses, and payrolls for the previous five years to the National Council on Compensation Insurance (NCCI), with the exception of a few states that have their own calculating bureaus. These bureaus use three years of data ending one year prior to the start date of the rating period. An example of this would be, if they were calculating your 2008 rate they would use the years from 2004-2006.

How Can Employers Reduce Their Experience Modification Rate?

Maximizing your Experience Modification Rateis one of the most desirable ways to rapidly increase the bottom line of your company, which is why it is crucial to take the necessary action now.

If you don't know how your experience modification rate is determined or what the correct rates are supposed be, then in all likeliness you won't be able to do it without assistance.

The best way to lower your experience mod rate is by talking with a workers compensation specialist. There are a limited amount of businesses out there who don't require payment upfront and will work to get your premiums lowered as well as fix errors made by insurance companies that will likely lead to a considerable refund on previous years' policies.

There is a very good chance that you have been being overcharged on your premiums for years and you probably had no idea. are well-known for miscalculating experience modification rates, using the wrong workmans comp class codes, and not crediting employers all the available discounts.

Work comp insurance companies are out to make money not save you money. It's in the insurers best interest for you to not know thatthey are overcharging you.

Typically, about seventy five percent of employers are being overcharged. Our company typically finds around $37,500 in overcharges after reviewing and fixing mistakes made by workers compensation insurance companies. The question is how much money is your business losing?

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