Controlling Workers’ Comp Costs and Your Bottom Line

Workers' compensation costs can make or break your bottom line. However, control over these costs is more attainable than you might believe if you understand your experience modification factor and its impact on your insurance premium.

The mod factor represents either a credit or a debit that is applied to your workers' compensation premium. A mod factor greater than 1.0 is a debit mod, which implies that your losses are worse than expected and a surcharge will be contributed to your premium. A mod factor less than 1.0 is a credit mod, which means losses are much better than expected, leading to a reduced premium.

If your mod factor is over 1.0, show management how controlling costs can save you money on your insurance premium when it falls below the 1.0 threshold.

The key to controlling your workers' compensation costs is understanding your experience modification factor and its effect on your insurance premium.

Control Your Mod Factor

You may not know it; however, you do have control over your mod factor and control over your workers' compensation premium.

Your mod is calculated based on data reported to the rating bureau by past insurers. Incorrect or incomplete data can cause inaccurate mod factors. Evaluate your loss and payroll information to ensure that your Xmod info is complete and accurate.

You can likewise manage your mod factor by encouraging everyone to concentrate on safety, especially management and anyone else who is associated with managing costs. Everyone working safely means fewer accidents to report to your insurance carrier and a lower mod factor.

Control Costs with a Return-to-Work Program

Another way to control your costs is to develop a return-to-work program and provide customized or light tasks to injured workers who can return to work.

Choosing modified or light-duty jobs may appear troublesome, but this is a crucial way to minimize your workers' compensation costs you spend fewer days far from work and you keep routine contact with employees, so you can see how their healing is advancing. The most successful return-to-work programs can accommodate nearly any restrictions.

Workplace Policies Help Control Costs, Too

Your workplace policies should motivate safe working habits and timely reporting of injuries and accidents. Numerous companies have accident reporting policies in place however do not bother to execute them, which is foolish since workers' injuries could go unnoticed and worsen over time.

When you get a claim for an on-the-job accident or injury, report it to your workers' compensation company as soon as possible.

After an accident or injury, examine the incident immediately. Trigger examination helps you protect evidence and can discourage employees from making fraudulent claims in the future, we also discuss this in our article titled "Workers' Compensation - Frequently Asked Questions".

If workers' compensation costs are hurting you economically or if you wish to find out more about how your mod affects your premiums, speak to your broker at TPG Insurance Services for the guides, resources, and policies you require to keep your costs in check. We're here to assist you in securing your business and your bottom line.

The coalescence between your bottom line and your workers' compensation costs is something to consider. Why not have someone that helps you keep an eye on both things? Call us at 909.466.7876 and schedule a free consultation!

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