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Large Deductible Mods Do Exist


Large Deductible Mods

Large Deductible Mods do exist even if you have been told otherwise.  Your company may have been informed that once you have a large deductible policy in place, E-Mods are a thing of the past.

Your company is still in the E-Mod system.

Picture of Large Deductible Mods Stethoscope and Calculator

This is one of those misunderstandings that seem to pervade Workers Comp.

Unfortunately your company’s losses were reported to the rating bureaus (NCCI, WCIRB, etc.) and you do have a Mod in most cases.

Of course being self insured would usually preclude your company from having a Mod.  However, you are not a self insured if you have a large deductible policy.

A large deductible policy is differentiated from a small deductible due to the level of the deductible.  Most rating bureaus including NCCI  consider any employer with a $100,000 deductible or larger as a large deductible employer.

Large deductible Mods will be calculated by using the loss data that is reported to the rating bureau on your Unit Stat Date similar to other WC policies.

Even though I have written on this subject often, this is one area where misunderstandings crop up- especially if a company decides to not insure under a large-deductible plan at renewal.


The former large deductible company is then presented with an E-Mod they never even realized was in place.

One of the better studies on Worker Comp Large deductibles is 2006 National Association of Insurance Commissioners (NAIC) report on large deductible arrangements.   The definitions alone are worth a read.

Man Hand Holding Butterfly Net Large Deductible Mods Catching Flying Money

I have written often on Large Deductible E-Mods in the past. Some of the articles are:

X-Mod (EMod) Surprise

Premium Audits For Large Deductibles

WC Large Deductibles And The Rating Bureaus

Please note that I am writing on a limited point in what can be a complex issue.   Many large deductible plans are custom-built for employers.  However, the loss reporting requirement of the rating bureaus still applies to these policies.

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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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