If you’ve read my prior blog post on “Debunking the Mystery of the Mod”, you should now have a deeper understanding of your Mod (Experience Modification Factor).

To briefly recap, your Mod is a factor that represents whether your company’s workers compensation losses are better or worse than average in your industry. Your state Workers Compensation and Rating Board calculates the Mod using actual losses for three years (excluding the current period) compared to your actuarially determined expected losses. A debit Mod (greater than 1.0) indicates that you are paying more than your peers while a credit Mod (less than 1.0) means that you are performing better than your peers and your premium is credited to reflect that.

With this knowledge in mind, let’s move forward to discuss what is within your power to control and positively affect your Mod, with the goal of creating a credit mod to achieve Workers Compensation premium savings.

 Here are the Top 10 Ways to Control Your Mod

  1. Investigate accidents immediately and thoroughly; take corrective action to eliminate hazards, and be aware of fraud.  Document, document, document.
  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. The sooner the carrier is involved, the sooner the costs can be controlled.
  3. Take an aggressive approach to providing light duty to all injured employees upon their release from treatment. Supervise light duty employees to ensure their conformance with restrictions. This ensures they are back to work in a timely fashion and the Workers Compensation claim is closed.
  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. Create a return to work program.
  5. Set safety performance goals for those with supervisory responsibility. Success in achieving safety goals should be used as one measure during performance appraisals. This could include spot bonuses, gift cards for a safe week/month/quarter, etc.  Incentivizing employees has proven to be successful to achieving desired behavior.
  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.  Create a monthly or quarterly safety meeting.
  8. Make safety a priority – senior management must be visible in the safety effort and must support improvement. The message must come from the top.
  9. Evaluate accident history and near-misses at least monthly. Look for trends in experience, and take corrective action on the worst problems first.
  10. Engage Borden Perlman in the process. We have many tools and resources available and have a track record of saving our clients thousands of dollars by reducing their Workers Compensation mod.