Workers' Compensation
Understanding Your Workers' Comp Experience Modifier
6 min read
The experience modifier (e-mod) compares your company's claims history to other businesses in your industry and payroll range. A 1.0 is average; below 1.0 lowers your premium, above 1.0 raises it.
Claims frequency tends to hurt your mod more than claims severity. Several small claims often move the number more than one larger one.
Documented safety programs, timely claims reporting, and return-to-work programs are the levers most within your control between now and your next mod calculation.
If your mod seems off, ask your broker to review the loss runs behind it — errors in payroll classification or claim status happen more often than you'd expect.