The development of an experience mod, for most, seems shrouded in secrecy. The formula is complicated and data sources seem hidden or taken from vague sources.

Although the experience mod promulgation process can be difficult understand we have specialized experts who will work with you to help you fully understand the formula and help you review your current mod. Errors in mod rates can cost you thousands of dollars.

Here’s a few common areas where experience rating mistakes are discovered:

• Claim Data – Claim data is provided to the rating bureau (NCCI) by each individual workers compensation insurance company that an employer may have had during their experience period. This information includes paid and reserve amounts established for any given claim and can be misstated.
• Classification Code – It’s just as important for an employer to have the correct classification code used on their experience rate calculation as it is on their policy. Each classification code that applies to an employer’s workers compensation program will have its own unique rating factors. Factors that produce an employer’s expected losses, a major part of the experience rating calculation. An incorrect class code will skew the calculation and lead to an incorrect Experience mod Rate costing you money.
• Payroll or Remuneration – Properly assigned payroll to the correct classification code will produce the correct expected losses in the formula. If the payroll is reported incorrectly by the insurance company, or if an adjustment due to an audit dispute has not been corrected by the insurance company, the Experience mod Rate will be wrong and possibly cost you money.

Chittenden Group offers you solutions. You may now understand how experience modification rating problems can be a nightmare! Unfortunately there are no easy fixes even if and when a problem is easily identified.

Contact us today to do a thorough claims, classification and experience mod rate analysis. This review requires an expert consultant who knows what to look for, when to look for it and how to have it corrected. We can even help you with future experience rating projections!

Mod Review Effect on a $220,000 Workers Compensation Premium

Financial Effect on Workers Compensation Cost After Review

• Pre-Review Premium $305,800
• Post-Review Premium $204,600.00
• Dollar Savings “$101,200”
• Percentage Savings 33%