Safety Programs – EMods or XMods Take Time To Decrease

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EMods or XMods – Safety Programs Have A Cumulative Effect

The EMods or XMods safety programs take time to decrease your premiums.  E-Mods also known as X-Mods in California are basically the same as a credit score for an individual.  The main difference is you can fix your personal credit score in a few weeks.  Mods take a few years to correct or reduce even slightly. If one looks at any EMod (XMod) reduction program, the first recommendation will always be to create or enhance your safety program. 

Vector of Man Climbing on Numbers Safety Programs Credit Score
123RF

I presented this concept at the NC Mid State Safety Council Conference day before yesterday.  A safety program takes approximately 18 – 24 months to start appearing in your company’s EMod and will not appear fully for up to four years.

I am very concerned that safety professionals or complete safety departments in various industries were actually terminated as the EMod actually did not move or increased at the time of the first policy renewal.

One of our old clients went through this situation.  He was working for a trucking company in South Carolina.  He had worked night and day to get his company’s E-Mod down.  The EMod ticked up slightly due to factors when he was not even working for them.   The next safety person in the job was lauded for their efforts even though he had only been on the job for six months as the Mod started ticking down.

The EMod or XMod will actually decrease after the safety professional or department had been reduced or eliminated.  After a brief period of time, the Mod will then increase sharply.  As I have said very often the Work Comp rating environment operates on a delayed basis.  You can go back 57 months into the past to calculate a Mod in certain situations.

Graphic of decrease Arrow Safety Programs On Bar Graph
(c) 123rf.com

In this economy, it is hard for a company to have patience as a virtue.  My company had been called into more than one instance where the safety department needed an outside source to prove to management that their efforts were working overall.  One such company was an oil and gas company in Oklahoma.   Upper management was astounded that the safety program was working but would not show in the E-Mod right away.

There are many factors that figure into the E-Mod such as changes in:

The bottom line is your safety program may be working for your company.  You may just not see it in the numbers yet.  

©J&L Risk Management Inc Copyright Notice

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James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt 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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