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E-Mod X-Mod Reduction – #1 Question We Receive


E-Mod X-Mod Reduction Is A Very Popular Question

E-Mod X-Mod reduction is by far the most popular question we receive from phone calls, emails, and in-person at conferences.

Picture of Man Holding up a Question Mark E-Mod X-Mod Reduction Symbol

How do we reduce our E-Mod today or something along those lines is usually the question.  There is no method for E-Mod (X-Mod) reduction that will show results immediately. The system is set up as a trend analysis of sorts.

The look-back or Experience Period is usually your 4th, 3rd, and 2nd policies in the past.   There are many exceptions to that general rule.

There are so many articles on this blog concerning E-Mod X-Mod reduction that it would be easier to refer back those articles instead of reiterating them again.

The easiest way to find the articles on your own with a slant more towards your individual type of business or organization is by using the search box on the right side of the page.   In fact, you can search the 1625 article blog for other subjects in addition to E-Mods.   Feel free to print them for future reference.

One of the best ways for E-Mod (X-Mod) reduction is to have a safety program in place.   This is not the one that looks good on paper, but actually a functioning loss prevention program.   Keeping your workers out of the Workers Comp system by never having accidents is the best way to reduce your E-Mod.

Check out these prior articles on E-Mod (X-Mod) reduction:

Five Reasons For Sharp E-Mod Increases

When To Start Your Workers Comp Reserve Reduction Program

Experience Mod Reduction Plans – Are They Really Worth It?

A Quick Workers Comp Reserving Refresher

Picture of Thumbs Up Gesture with Business E-Mod X-Mod Reduction Concept

Your E-Mod can be thought of  as the credit score from hell.  Your personal credit score can be changed instantaneously by correcting your credit risk.  However,  your E-Mod may take up to four years to fully reflect your safety efforts.

Patience is a virtue in this area.  At least once your safety/loss prevention program shows improvement, the great results can be ongoing even if your company happens to have one accident.

The same methods can be used for self-insured with a twist.  Your E-Mod is actually referred to as a LDF (Loss Development Factor).  The LDF takes into account a ten years span using an actuarial method to predict the long tail values of a claim.  I will cover those next week.   Until then, you may use the search box on the right side of the page and search for LDF.

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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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