Workers Comp Audit Stress Reducer
Use It For Your Next Premium Audit

Auditing Workers Comp EMods or XMods – Worth Your Time?


Auditing Workers Comp EMods or XMods – Tricky Stuff

By Auditing Workers Comp EMods or XMods, you may find premium savings or you could blow up your program.

 Workers Comp E-Mods (X-Mods in CA) can save your company a large amount of premiums if kept in check.

Is trying to make sure that your E-Mod / X-Mod worth your time?  I had listed a few pointers before you undertake this arduous task:

Picture of Auditor Auditing Workers Comp Concept
  • Is your E-Mod (X-Mod) high enough to warrant any type of review?  If your Mod is below .8, you may find spending your time elsewhere in your Workers Comp program as being a more efficient use of your time.  I am not saying that a .8 E-Mod is the best possible.  You may find the next point to be the best place for your efforts.
  • Does your company have a viable safety program in place?  If not, you may not being using your time wisely.  A full-fledged safety program should be priority #1.  If your company’s safety record is not that great, creating or updating your safety manual may be the best place to start.
  • Realize the Mod system is a delayed system.  Your current efforts will only show up in subsequent years.  Patience is a required virtue with the Experience Mod system.  Your saving efforts will show up proportionately, not all in the first year.
  • Do you have updated loss runs?  Are they older than two weeks?  Do you have the precious and very valuable real-time online access to your reserves?   If not, your E-Mod review may be out date as soon as you finish it.

    Picture of Auditor Auditing Workers Comp Calculating Tax And Dollars Graphics
  • Do you have access to your last four years rating bureau reports?  If not, you may not be able to know whether or not the right loss run figures went on the right rating bureau report.
  • Have you read over at least the basic rules for X-Mod calculations?  I have been doing them for many years for clients.  They make my head spin sometimes.
  • Do you have a software package that can help you calculate the Mods?  Be very careful at this point as not all software packages are that easy to use.   The old GIGO model may show up here (Garbage In = Garbage Out)
  • Each state may have its own peculiarities on some of the inputs to the Mod system.
  • Do you have a copy of all your policies and audits from the last four years?

If you are in the midst of analyzing your E-Mod (X-mod) and you have any questions, please feel free to contact us.

If you have already started an analysis or have decided to do one after reading this post, you are already saving your company Workers Comp $.   You are paying attention to your WC, which is a great first step.

©J&L Risk Management Inc Copyright Notice



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


Get the latest workers' comp news FREE!

This field is for validation purposes and should be left unchanged.