![]() ![]() ![]() “ Actual losses” divided by “ Expected losses” equals “ Experience Modification Factor.”Īn employer with an experience mod of 1.00 is exactly average in its claims cost loss experience compared to businesses of similar size and industry. At its core, the math used in determining this is actually quite simple Experience MOD Factor CalculationĮssentially an employer’s experience mod attempts to show whether its actual workers’ compensation losses are higher or lower than its expected losses. Experience mods of employers with operations in multiple states are calculated by The National Council on Compensation Insurance (NCCI).īelow is a brief explanation of what elements are involved in an experience mod, how it is calculated and how it affects an employer’s workers’ compensation premium. Many business owners know what their company’s experience mod factor is, but aren’t quite sure what it means or how it is calculated.Īn experience mod is generally assigned to an employer whose annual workers’ compensation premium is more than a set dollar threshold specified by the state where the employer is based. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |