Control What You Pay For Workers Comp

By September 3, 2015 Personal Insurance

derek ace

For most business owner, workers compensation insurance makes up about half of their insurance $$$ spend each year.  In other words, their workers compensation premium equals their property, general liability, auto, and umbrella combined.  That can be big $$$.  What most business owners also don’t realize is that they have control over what their workers compensation ultimately costs.  How do you control how much you pay?  Through the Experience Mod.

The Experience Mod is a number that reflects the claim history for a policy.  A policy with an average claim history has an Experience Mod of 1.  Great claim history is less than 1 or a “credit mod,” poor claim history is over 1 or a “debit mod.”  So, when determining how much a workers comp policy costs, the Experience Mod is multiplied to the policy “standard” premium to determine the final cost. Simple math proves that it pays to control workers comp claims and keep the Experience Mod under a 1.

Is your Experience a 1 or higher?  Give me a call.  We have a proven process to reduce your Experience Mod and put more $$$ on the bottom line.

Derek Martin
Insurance Ace