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Three Ways Experience Mods Can Penalize Your Company


Three Ways To Penalize Your Company’s Experience Mods

E-Mods (X-Mod, Ex-Mods) do not 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.  These three ways to increase Experience Mods came from a recent loss-run review project.

Clipart of Man Holding Key Experience Mods Three Door With Question Mark
  1. 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.
  2. 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.

    Blue Eye Of Woman Experience Mods With Isolated White Background
  3. 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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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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