Mystery - The Experience Modification Factor

We have received quite a large number of questions regarding the Workers Comp Experience Modification Factor over the past few weeks.

The Experience Modification Factor also goes by Experience Modification Rating, and Experience Modifier. The E-Mod has many acronyms such as:

• Ex-Mod (California)
• X-Mod (California)
• Mod (National)
• E-Mod (National)
• EMR
• ExMod, XMod, and EMod.

The definition of an E-Mod is: A multiplier applied to the premium of a qualifying policy and provides an incentive for loss prevention. The mod represents either a credit or debit that is applied to the premium before discounts. If your company’s loss experience is more costly on average than other companies' loss experiences in your industry, the result is a debit mod, or surcharge, on premiums. If your company’s experience is less costly than the industry average, you will receive a credit mod, or discount, on your premium.

E-Mods are one of the most confusing areas of Workers Comp insurance, as it affects such a large number of policies. We will examine the E-Mod more closely over the next few posts.