Sharp E-Mod Increases – Five Reasons
Five reasons for the sharp E-Mod increases are:
- The E-Mod may have grown gradually without notice. Checking back to see the E-Mods (X-Mods) over the prior five to seven years may show a pattern starting to develop that went unnoticed as there was no one big jump.
- Your company’s safety program is just not working properly. This would be the reason for the largest number of sharp E-Mod increases. The X-Mod system is specially designed to require larger premium payments from unsafe employers. A large number of injuries in even one year can easily penalize an employer for being unsafe. We have seen many employers eliminate or severely cut back their safety programs. The old adage – “Pay it now or pay it later” is very true.
- Your company does not review your loss runs. Online access to your claims can be golden in monitoring your current claims situation. Many posts have been published in this blog regarding reviewing loss runs and online claims access. The loss runs can be seen as a map to find your way to what is occurring in your WC claims.
Not following the Six Keys To Workers Comp Savings. Use the search box in the upper right corner of the blog for the Six Keys. It is worth your time. I wrote the first four over 20 years ago. They have not changed since my initial article in the ’80s.
- Workers Comp is not the main priority – even in the insurance budgeting. Over the past three years, the new health insurance regulations have become a higher priority until a massive Workers Comp audit bill is received from the carrier. Once a large increase in an X-Mod or premiums is in place, expert advice is usually the best method to reduce your WC budget.
This list is a small percentage of the reasons for a larger premium bill or X-Mod (E-Mod) increase. Each WC situation has some unique aspects. This list is the most common reasons that we see overall.
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