The Experience Mod Is Like A Credit Score But Worse
The Experience Mod or E-Mod X-Mod can be compared to a credit report with nightmarish results in some cases. How does a credit report compare to the E-Mod or X-Mod?
The main difference between a credit report and a Workers Comp E-Mod is how fast each can be corrected. Let’s say that you have your business’s E-Mod and your credit report sitting in front of you. If you find a way to correct something in the credit report, the results are immediate.
If you want to try to improve your E-Mod and take steps to improve it, the results will take many months or years to show for your efforts.
Another major difference is that if you find an old error on your credit report, you can fix the old error immediately.
For instance, if you find an error from 2000 on your credit report, you can fix the error and improve your credit score. You cannot usually correct a Workers Comp reserving error from the year 2000. It just does not usually work that way.
I have presented often on this very topic. One of the major concerns involves the safety employees and consultants not being given enough time to turn around an Experience Mod to a level desired by an employer.
Experience Mod Operates Over Time
One has to remember the Workers Comp E-Mod system operates on a delayed basis. It is not the place for immediate results. Often, the results of a good safety program may take up to five years to show its full effect.
Check out my next blog to see why correcting an error on your loss run from the year 2000 will rarely help your E-Mod.
