Work Comp Experience Mod and Changing Your Policy Dates

The experience modification is a ratio of expected losses to actual losses by a particular employer.

A mod of 1.00 means you are average.

.90 means you are better than average – plus you save roughly 10% on your workers’ compensation insurance.

A mod of 1.10 means you are worse than average – plus you pay roughly 10% more on your workers’ compensation premium.

Many client like to move their policy expiration dates so that they come up for renewal on the same dates.

A, generally, good idea.

Except for workers’ compensation..

When you change the date of your workers’ compensation policy you get more time added to your experience mod calculation.  I can’t explain the math, but it almost always results in the experience mod going up (a bad thing for employers).

In short, don’t change the date of your workers’ compensation policy unless you want to see a upward blip on your premium.