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E-Mod X-Mod

Experience Modification Factors are also known as X-Mod and E-Mod are critical to cutting your company’s Workers Compensation premiums. The E-Mods are calculated by NCCI, WCIRB, or an independent Rating Bureau using UNISTAT data supplied by the insurance carrier.

Many people refer to the Experience Mod as the E-Mod X-Mod or EMR.  The terms all refer to the same number.   They are completely interchangeable.

The E-Mod X-Mod number can cost an unsafe employer a large debit to their insurance budgets.   The number ranges from the lowest I have seen of .45 to 3.20.  One can look at those two Mods as a 55% discount or a 320% additional cost.

Safety remains the most influential way to reduce a high Mod or sustain a low one.   Many times, companies do not allow enough patience in reducing a high Mod.

One can think of three different kinds of EMRs –

1.01 and higher is called a debit Mod

1.00 is neutral Modification Factor

.99 and lower is a Credit Mod

Disputing a Mod requires finding one of the Total Incurred figures from the Mod Sheets to be inaccurate.  This does happen more than one may think.

The E-Mods are calculated six months before policy renewal using the last three years’ claims data as reported on the UNISTAT Date .   The claims data used is usually from 18 to 54 months in the past.

The calculation is totally retrospective in nature.   An accident that occurs today may show up in an employer’s insurance policy bill calculations for 4 – 5 years.

The same type of employers is compared using Classification Codes to describe the employer’s job functions.

One can agree or disagree with the rating bureau’s and carrier’s use of the system.  The E-Mod X-Mod system is the one that is in place presently and for years in the future.



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