One of the biggest factors in most business’ work comp premium is the MOD, or experience modification factor.
A MOD is basically a score that your business is given based off of your work comp claims experience compared to the peers and competitors in your same industry. The MOD scores you based off of the last three years of claims history, excluding the most recent year. If you had higher than expected claims for your industry, your premium is higher than your peers. If you had lower than expected claims, you actually get a credit added to your policy and you pay less than your average peer.
A lot of business owners don’t think you can control your MOD, but you actually have complete control over what your MOD score is, which helps reduce and control your premium over time.
There’s a lot of things you can do to reduce your MOD that most business owners don’t really think of. By implementing certain injury management procedures, you can drastically reduce the cost of a claim. Safety programs, return-to-work programs, and injury management strategies can make a huge difference in controlling your work comp cost and add massive dollars to your bottom line.