As an educated business owner, you are comfortable with the nuances of your Workers Compensation Experience Modification Factor (Mod), have a risk management and safety program in force and even implemented a workplace wellness program to support your employees’ healthy lifestyle choices!  Way to go!

With all of this under your control, your Mod was recently issued and has increased, contrary to what you expected. What are you able to do to dispute your Mod? 

To begin, contact Borden Perlman who will gather the payroll audits for the policy periods used to compute your Mod and loss runs for all policy periods (with a valuation date that is 6 months prior to the effective date of the Mod). 

Together, review this data to identify any errors.  The next steps will follow.  Borden Perlman can lead this initiative with the insurance company and NJ Rating Bureau but will need your input.

  1. STEP 1 – call the insurance company to determine the correct person to discuss errors on the unit stat report.
  2. STEP 2 – gather your facts and call the insurance company to request the correction.
  3. STEP 3 – following the call, immediately send written verification on company letterhead to insurance company including the following information:
    1. Company name
    2. Policy number and coverage dates
    3. Your Risk ID #
    4. Clear explanation of error and timeframe
  4. STEP 4 – verify data correction has been completed 3 days after submitted. DO NOT GIVE UP and remain persistent and firm.  Do not move to Step 5 until Step 4 has been completed.
  5. STEP 5 – upon confirmation from the insurance carrier that the data was corrected and send to the NJ Rating Bureau, wait 7 days and contact the rating bureau.
  6. STEP 6 – verify NJ Rating Bureau has completed the Mod correction. DO NOT GIVE UP and remain persistent and firm.  Do not move to Step 7 until Step 6 has been completed.
  7. STEP 7 – obtain copy of revised Mod worksheet from NJ Rating Bureau
  8. STEP 8 – send corrected Mod worksheet to insurance company
  9. STEP 9 – verify that the new Mod was applied, and the correct credits were issued

The timeframe on these 9 steps can vary from a few weeks to a few months so please be patient.  If the error is obvious and the explanation of the error is clear, this timeframe could be on the shorter end. 

 If your insurance broker is not this involved in your business, contact Borden Perlman who can ensure that your Mod is issued correctly, and you have the support and tools you need to maintain a safe workplace!