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E-Mod Spike – Article Reader Question on What Is A Bad Increase?


Employer’s E-Mod Spiked Over Two Years

Our E-Mod has increased quite significantly from .8 to 1.29 over two years.  What could have caused this spike?
Question – We are renewing our Workers Comp policy in October. 

Our agent has said that if our E-Mod increases much more, certain insurance carriers may not write us and we may even have to go into the Risk Pool.

Vector Graphic of Man with pointing diagram e-mod increase
We are a multi-state restaurant corporation based out of California. Is an E-Mod of 1.29 a bad Experience Rating? Answer – An Experience Mod of 1.29 may not necessarily be that bad. Your Workers Comp carriers and other insurance companies may be looking at a large increase from .8 to 1.29.
That is quite an increase in your  Mod over a short time.  This means that your company has become 50%+ more risky to underwrite than in the past. You desperately need to have an expert review your Workers Comp claims loss run now to see if your files are over-reserved. Did you recently change carriers?
Watch out for the Unit Stat date for your policy. That is when you need to have your Workers Comp reserves in line. The overall insurance market in California has experienced a reduction in premium rates over the past few years. However, there is a 16%+ overall premium rate increase pending.
I have seen where a group of trucking companies had to go into a risk pool and their E-Mods were below or equal to  1.0! This was due to a lack of Worker Comp insurance companies that will underwrite a certain Classification Code. As your E-Mod (Ex-Mod in CA) increases, the likelihood that a conservatively priced insurance carrier will underwrite your company decreases. Remember, all carriers can file Classification Rate exceptions to the state-supplied rates. Next Up – Another Question on E-Mod/Ex-Mods.

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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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