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You Have Another Business Credit Score That Needs Your Attention II


Business Credit Score Part II

What is  The Secret Business Credit Score?
It is your Experience Modification Factor (E-Mod, Mod, X-Mod, etc). During all of my Workers Comp presentations, I pointed this out. If it is a longer presentation, I usually go through how E-Mods are calculated.

Picture of man hand doing Credit Score on computer

If you think about it, even your personal credit has a score. I usually equate a score of 692 with an E-Mod of 1.0. That means you are average, or you have had an average amount of Workers Comp claim results compared to others in your industry if your company has been classified properly with the correct classification codes.

Anything below 1.0 is the same as having a credit score of above 692. That means a score of 750 is similar to an E-Mod of .70. If you have an E-Mod that low, you will have more insurance carriers bidding for your business, just as you would have more banks interested in you with a credit score of 750. Your company will pay lower Workers Comp premiums just as you would pay lower credit terms on a loan.

Money Graph Credit Score And Calculator Icon

An E-Mod of 1.0 though, if compared to your grades in school, would be a “C“. Is a C acceptable to you? How do you get to an “A“?

Does that all sound easy and direct? Well, it is just not that easy.

Check with me on the next post and I will tell you how Workers Comp E-Mods are 10 times more difficult to improve or have errors corrected than with your D&B report or your personal credit score.

By the way, if you are reading this post, you have taken the first step to improving what you pay for Workers Comp services including your Workers Comp Credit Score better known as an Experience Modification Factor.

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Experience Mod Predictions Accurate?

Experience Mod Predictions – Accuracy Depends on Who/Whom You Ask Most Experience Mod predictions can be a tedious process that has cofounded most people working

James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


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