The Score That Dictates Your Premium
In California, your Experience Modification Rating (X-Mod) is the single most important number in your workers’ compensation policy. An X-Mod of 1.0 is average. Anything higher means you pay a surcharge; anything lower gives you a discount.
How is it Calculated?
The WCIRB compares your Actual Losses (what your claims cost) against your Expected Losses (what a company of your size/industry usually pays). Frequency of claims hurts your score more than the severity of a single claim.
3 Steps to Lower Your X-Mod
- Report Claims Immediately: Late reporting leads to higher claim costs, which inflates your X-Mod.
- Invest in Safety Training: Prevention is the only way to stop claims before they start.
- Return-to-Work Programs: Getting injured employees back on light duty reduces the “lost wages” portion of a claim, keeping costs down.
Need an X-Mod review? Contact Ted Hamm Insurance today.