Premium Reduction CenterDUNCAN FINANCIAL GROUP · KEYSTONE

The experience mod

Your mod went over 1.0 and nobody can explain why.

Over 1.0 means you're paying more than an average company your size in your industry. Each claim stays in the calculation for three years, so one bad stretch keeps costing you long after the claims close.

Start a conversationThe Employer Success Program

What's usually behind it

When we line up a mod worksheet against the loss runs, the cause is almost never one big claim. It's the same kind of injury coming back, often small ones, through different employees doing the same task the same way.

Sometimes there are also errors in the data. Payroll in the wrong class code. A claim reserved high and never brought down. A claim that should have closed and didn't. Those are worth finding, but they rarely explain the whole number.

What it costs, in the terms your CFO uses

Take the extra premium the mod adds this year and multiply it by three, because that's how long the claims stay in. Then divide by your margin. At a 5 percent margin, every dollar of added premium takes about $20 in sales to replace.

The margin is an example. Use your own.

One example

A home health agency with more than 200 employees had a 1.516 mod and sixteen injuries a year. When we lined the claims up by hire date, a big share came in a caregiver's first few weeks. Injuries dropped to one or two a year, and the mod came down to 0.925.

Read the full story

Watch: what the mod costs you

Workers' comp experience modifier: how much does it cost you?
How insurance companies determine your premium

Where the Employer Success Program comes in

It starts with a Diagnostic and Plan. We read your loss runs, your mod worksheet and your key contracts, and we talk with the people who run the work. You get the pattern behind your claims and a short list of what's worth fixing first.

From there our claims, HR, safety and fleet people work alongside yours, and you get a Score Card at the start and every year after, measured against your own starting point.

How the program works

Start with a conversation

Send me your current mod and what's changed. I read these myself and reply within two business days. If the mod is about where it should be, I'll tell you that too.