Archive for: Experience Mod & Premium Audit

Many businesses accept on “good faith” that the Workers’ Comp audit is done correctly. Yet, the audit process is complex and prone to many errors and omissions. Since a Workers’ Compensation premium is estimated initially, the actual cost is determined through the premium audit, which can result in higher and unexpected costs. There are two […]

How do companies keep score in workers’ compensation? Typically insurance carriers provide basic or “top of the line measurements,” such as annual totals of claim expenditures, average claims costs for medical only claims and average claims costs for lost time claims to employers. They may even break down some injury costs by department. Not surprisingly, […]

One of the most confusing components of an employer’s Workers’ Compensation Policy is the Experience Modification Factor. They watch it increase and decrease from year to year – higher Experience Modification Factors generally increase costs and lower factors reduce them. What’s often missing is an understanding of how the Experience Mod factor works and what […]

By the very nature of the insurance business, agents are busy folks. So, it’s easy to understand how some “details” can be missed, like the importance of keeping a trained eye on an employer’s Workers’ Compensation Experience Modification Factor. What may be an unintentional oversight often translates into doing a disservice to a client, a […]

Nineteenth century Attorney Russell Conwell earned more than $6,000,000 delivering his famous “Acres of Diamond” speech. He said that riches are right in front of us, although most people spend their lives looking far and wide. It’s the same with Workers’ Compensation. Employers get excited about lower premiums, while completely missing the big money that’s […]