Your Experience Modification Factor (or Experience Mod) is the number one cost driver in your worker's comp program.
The problem is that over 60 percent of Experience Mods are incorrect.
This means 60 percent of businesses are wasting money on insurance premiums that could have become profits.
Would you happen to know what your Experience Mod is right now?
Would you happen to know how to lower your Experience Mod?
We’re going to fix that today.
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5 Reasons Business Owners Can’t Lower Their Experience Mod
Here are five reasons over 65 percent of business owners are being overcharged for their workers compensation insurance…they don’t have control of their Experience Mod.
1) Insurance agents do not explain the Experience Mod to business owners.
Most insurance agents will tell their clients, “Hey, your MOD is what it is.,”
You may be aware you have an Experience Mod, and you may even know what it is, but most business owners don’t understand how it’s calculated.
More importantly, what they can do to lower their Experience Mod beyond just being “Lucky,” and not having injuries.
2) Most insurance agents do not understand how the Experience Mod works.
Frankly, to properly understand the nuance of a worker’s comp Experience Mod, an insurance agent needs to get training.
They need to dive into the insurance policy forms and programs to better understand all the levers impacting an Experience Modification Factor.
We’ve done that work here at Rogue Risk. I personally hold the Certified Workers’ Compensation Advisor designation which has provided our agency in-depth knowledge and skills to deliver superior value on:
- Reducing the Experience Mod
- Managing Employee Injuries
- Acing the Premium Audit
These are just a few of benefits to partners with Rogue Risk. It all begins with a free Experience Mod Audit and Review.
3) The Experience Mod is glossed over.
Your Experience Mod is most often explained as, if you have losses, it goes up. If you don’t have losses, it goes down.
So business owners will say, “Hey, I’ve been lucky. My experience Mod is low or I’ve been unlucky, my experience MOD is high,” which is a travesty.
You have complete control over your Experience Mod as a business owner.
4) Workers’ compensation insurance pays the lowest commissions.
Of all the different types of insurance policies, workers comp pays the some of the lowest commissions to agents. This means workers comp is often an afterthought in terms of driving revenue for insurance agents.
The result is agents spend the least amount of time on your workers compensation when building out your insurance program.
That’s why most agents focus on property insurance. Most agents focus on saving the business owner a thousand bucks and make the max commission when if you dive into your workers’ comp, there might be tens of thousands of dollars in savings right off the rip because of simple misclassification.
Don’t sleep on human nature.
5) There is special software broken Experience Mods.
Rogue Risk has invested in special technology that helps pull out the insights that allow us to make systematic and programmatic changes in your business that are going to drop that Experience Mod.
If you can’t find the problem, you don’t know what to fix.
Our technology helps business owners determine what their lowest possible Experience Mod can be and develop a plan for reaching that number…turning the premiums you pay in workers comp into profits for your business.
Most agencies are unwilling to make this investment in technology.
The Rub
Business owners, you need to understand your Experience Mod, and we here at Rogue Risk want to explain it to you.
We can do this through a simple complimentary Experience Mod audit.
Workers compensation doesn’t have to be confusing, complicated or costly. There is another way. At Rogue Risk, we help businesses overcome these obstacles.
If your current insurance professional has never addressed issues such as total cost of risk or return to work programs with you before, then I’d encourage you to reach out to us today.
- You can call or text us at 518.960.6600
- Click here to contact us via email.
I look forward to introducing you to a new way of viewing your insurance program.
Thank you,
Ryan Hanley
