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Your E-Mod Is Not Only Important Number in Workers Compensation


E-Mod And X-Mod System

I have posted very often about how your company’s E-Mod /X-Mod can make or break your Workers Compensation insurance budget. One of the most popular questions we receive is “Our E-Mod is low and we have had no accidents. How can our premium have increased so much in such a short amount of time?

Vector Graphic Of Sacks of Money E-Mod And Coins

One of the shortcomings of the present Experience Modification system is that in a bad year for your company’s overall industry, even a good safe employer can suffer greatly. If companies that share your Classification Codes had a bad year with Workers Compensation claims, then your company will share in their loss as the Class Codes your company possesses will become more expensive even if your company has had a good year with Workers Comp incidents.

For instance, if your company is a trucking company that has instituted many safety measures and lowered your E-Mod this does not mean a decrease in premiums. The Class Code for Long Haul Trucking is 7228. If most of the long haul trucking companies in a certain state had many accidents, the NCCI or State Rating Bureau will increase the 7228 loss cost or advisory code. If the increase in 7228 was very sharp, then you may see a large increase in your company’s premiums even though your E-Mod is reasonable.

Graphic Processor Circuit Board E-Mod Design

E-Mods can individualize your company’s safety efforts, but only to a certain point. The E-Mod/X-Mod system is good, but it does have its faults. Many employers are looking to PEOs, Self-Insurance, and Captives as alternatives to regular Workers Comp insurance policies. One of the main reasons is that the cost of your Workers Comp insurance program is not affected by outside influences as much as some of the alternative programs.

Captives are becoming very popular as they are the best way to have the premiums that employers pay only based on the specific employer, not a group of similar employers. In other words, your safety efforts are rewarded more than some of the other programs.

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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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