Three Ways To Penalize Your Company’s Experience Mods
Actually, E-Mods (X-Mod, Ex-Mods) do not actually directly penalize your company’s Workers Compensation premiums. However, there are a few situations where your company’s E-Mod can experience a very sharp increase. I thought I would list three. There are others.
- Having numerous claims – nothing wrecks your E-Mod like having a large number of claims. The E-Mod systems have built in reductions if your company experiences one large claim. If your company experiences many claims, your E-Mod is usually going to skyrocket. This comes about due to the Primary Losses (up to $5,000 each) are not reduced whatsoever when calculating your E-Mod. I often hear “We only have small claims.” As I posted in this article, there is no such thing as a small claim.
- Not monitoring your claims loss runs – Your loss runs have so much info on them that can be useful in keeping your E-Mod in check. As I have posted often, having online claims access is golden for monitoring your loss runs as you can check on your claim reserves every day if you wish.
- Ignoring the Six Keys To Cutting Your Workers Comp Costs. I have studied Workers Compensation claims and premium audits over the last 20 + years and found some trends with employers or governmental agencies that have increased or already high E-Mods. I have noted six ways that employers drown themselves in claims and/or cost themselves big premium $$. I started with three and added in three over the last few years due to the changes in the Workers Comp environment. I posted the six on LinkedIn recently. I will go over each of the six next time.
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