Insurance FAQ’s: How do I reduce my company’s Experience Modification Factor?
Your Experience Modification Factor is (aka: a mod), is one of the most important factors in determining the cost of your workers compensation premium. If you need a refresher course on what a mod is and how it’s calculated click here or check out this video!
For the purpose of this blog post, we are going to focus on steps you can take to lower your company’s mod factor, resulting in a lower premium for you.
Here are our top tips for reducing your company’s mod factor:
- Create a culture of safety. Making safety a priority starts at the top. If management puts an emphasis on safety, sets up safety guidelines, has safety meetings, and continuously has discussions around safety, a culture of safety is created. Set safety goals for your management teams so they are motivated to encourage safety amongst their own teams. Take safety seriously and the rest of your employees will too.
- When an accident happens, investigate it immediately. What went wrong? What can be fixed so that an accident like this does not happen again? Were there witnesses who saw the accident happen? It’s important to look for instances of fraud too when an accident happens.
- Report claims to your carrier immediately and try to resolve the claim as quickly as possible. Remember that open claims impact your mod negatively, so you want to get them closed as quickly as you can.
- Look for accident trends and near-misses. Are the same accidents happening over and over again? What can be fixed to ensure there are not more of the same type of accident? Break the pattern by being aware of both accidents and near-misses.
- Do your best to get injured employees back to work as quickly as possible, with a written Return to Work program. Providing light-duty work assignments helps get injured employees back to work as soon as possible, which helps your bottom line.
Here at Holley Insurance, we have a program that can actually evaluate your company’s experience modification factor.
We are able to evaluate how your mod could change based on the types of claims you have and how it would affect your premium. Want to find out the lowest possible Mod your business could have? We can tell you!
If you’re a small business owner, we’d love to talk to you about the specific risks your businses faces and how we can help you protect it. Every one of our protection advisors is an expert in business insurance. Contact us here and let’s get started!
A little more about Holley Insurance…
Holley Insurance was founded in 2000, and retains a core base of loyal clients. We have locations in Roanoke, Rocky Mount, and Forest, VA. As an independent insurance agency, Holley Insurance represents a carefully selected group of financially strong, reputable insurance companies. Therefore, we are able to offer you the best coverage at the most competitive price. Holley Insurance was named “Top Insurance Broker in Southwest Virginia” by Virginia Living Magazine for 2021.