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Mod Increases To Over 1.0 – Five Bad Things Can Happen


Bad Developments With Mod Increases To Over 1.0

When a company’s Mod increases to over 1.0, it can rarely have no other effect to a budget other than paying more for WC coverage.

Dollars with Red Arrow Mod Increases Graphic

Please note that the term Mod also can mean E-Mod (EMod), X-Mod (XMod), EMR, Ex-Mod, Experience Modification Factor, etc.

There are actually more than five concerns with a Mod that crosses the neutral line.  A neutral Mod is 1.0.

The five main budget developments – (cash)  are:

  1. Certain carriers in certain markets may not underwrite coverage for companies with a greater than 1.0 Mod. In other words, you may have to change carriers to a possibly more expensive choice.  
  2. Governmental entities and some private companies will not use subcontractors with a Mod of 1.0 or greater.   Some have dropped this to .9 in certain markets.   This is a way to lose a large chunk of business very quickly.   I have one on my desk with this situation as I write this article.
  3. Mods are trend-based which means your Mod has some factor that will likely be tabbed your Mod for at least the next two years.  Rarely does a Mod spike for just one year.   The time to act is now when the Mod increases to over 1.0 .

    Thumbs Up Gesture Mod Increases Arrow With Dollar Sign
  4. The obvious budget buster is your company or organization will pay more for your coverage than your safer competitors.   The Mod is a direct multiplier.   Look at your last policy and premium audit from last year.
  5. Your company may have to move funds away from other areas and increase your safety and risk management program budget to turn the tide.  Presenting this budget shift to a Board or C-level managers can be a tough sell.


There are actually more than five.  These are the ones that we have seen recently when being called in to assist clients with their Mod.

Feel free to use the search box in the top right hand corner of the blog for more information on Mods.

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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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