The cost of workers’ compensation insurance is calculated based on several factors. The most important component is the experience modification factor (mod). All Things Comp is dedicated to helping you reduce workers’ compensation costs by providing a mod analysis and developing improvement strategies that yield tangible, cost-effective results.
How Is a Mod Calculated?
Mod factor calculations are complicated. The short explanation is that most states rely on the National Council on Compensation Insurance (NCCI) to collect data and assign a mod. Essentially, your company’s losses are compared to the losses of other businesses within your industry. Company size, loss frequency and severity are all taken into consideration when determining your mod.
If mod calculation is considered complicated, then actually analyzing and improving your mod can be downright difficult. In fact, many employers spend time and resources trying to improve their mod factor to no avail. The fact is that workers’ compensation claims can often have a snowball effect. The more claims filed, the higher premiums you pay. This can result in less time and money to dedicate to mod reduction.
How Can My Business Improve Its Mod?
Controlling workers’ compensation costs requires a multi-pronged approach. It isn’t enough to avoid workplace accidents. You also need a solid strategy for long-term improvement, and All Things Comp can provide the resources and guidance you need. OSHA compliance strategies, proactive safety programs, transparency in employee communications and comprehensive return to work programs are all part of the big picture. See our Workers’ Compensation Consulting page for details about the services we offer.
As a business owner or human resources representative, you already have your hands full. Understanding how your workers’ compensation costs are calculated and knowing the steps to take to reduce them can be a daunting task. The good news is that you don’t have to do it alone. Contact All Things Comp by calling (731) 300-2210 or by filling out the form on this page.