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Extremely High E-Mod Question And Ten Ways to Fix


Fixes For Extremely High E-Mod

Fixes for an Extremely High E-Mod are available if a company is patient.  I received this question from a blog reader last week.   Our E-Mod has been running over 1.4 since our company has been in existence.  It is now more than 1.7.  We are in our state’s assigned risk pool.  The rates seem extremely high.  What strategies would you suggest to decrease the Mod very quickly?

Graphic Of Extremely High E-Mod Bar Graph

One of the quickest ways to reduce your E-Mod is by instituting or improving your safety programs.  The claim that never happens will always be the best way to lower your E-Mod.   With an E-Mod of 1.7, your company likely had repetitive injuries and not just a few high-dollar injuries.

As you are in an NCCI-rated state, your company also likely experienced an E-Mod increase due to the E-Mod calculation changes.   

The other techniques to reduce your E-Mod would be:

  • Picture Of Man Hand Illustrating Extremely High E-Mod Bar Graph Increase

    Working with your carrier more closely – especially your claims adjuster.  The adjuster that sets the reserves usually knows whether your company is using some of the following techniques.  This can make a difference in your reserves.

  • First Reports of Injury must be immediately filed with the carrier
  • You must have a medical network 24/7/365 available for treatment.  Many industrial-minded clinics operate in your area.
  • You must have – and it looks like your company does not – a return to work program.   Assessing your company’s limited duty jobs and having those on file with the aforementioned medical network will reduce your Mod.
  • The way the employee is treated by your HR staff is important.  The injured employee is still your employee.  Treating them as such will help in all aspects of the WC claims.
  • Get a copy of your loss run and analyze it very heavily.  The loss runs are a map of how your company came to have a higher Mod.   Do all of the figures look correct on your loss run?
  • Online access to loss runs is priceless as you do not have to wait weeks before receiving one which is then dated by the time you receive the paper loss run.
  • Picture Man trying to Fix Extremely High E-Mod Computer

    If your company is large enough, a plant nurse is one of the best ways to handle the smaller claims more efficiently and to cut the costs of larger claims.  In case of a very serious accident, the plant nurse can be a literal lifesaver.  Almost all companies that have plant nurses have been very happy with their claims improvement.

  • Alternative Workers Comp coverage may also be a solution.  PEOs, captives, and self-insured groups are all possibilities   The one caveat here is choosing the CORRECT alternative for your situation and the right company.  Alternative WC coverage can be full of some unscrupulous companies.

This list of quick fixes is not going to be fully seen until three or four years in the future.  Workers Comp is a lagging-time system.   A bad claims year or a set of great improvements may not show fully in your E-Mod for quite some time.  Vigilance is also a key characteristic to companies that improve an extremely high E-Mod.


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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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