How can I lower my e-mod rating?
A sound safety program, a return to work plan and loss prevention procedures will lower your e-mod. This is crucial to helping you effectively manage your workers compensation cost. The following example compares two companies who perform the same service and employ the same number of workers.
Company A has a strong safety program, a good claim history, and therefore a low e-mod. Company A has an e-mod of .85, which results in a 15% discount on their workers compensation premium compared to other companies in the same industry. Because Company A has a credit e-mod, the company only pays $0.85 for every dollar of coverage received.
Company B has an inadequate safety program, a large number of claims/losses, and a high e-mod factor. Company B has an e-mod of 1.25. Company B pays 25% more for their workers compensation insurance than other companies in the same industry classification. For every dollar of insurance coverage received, Company B will pay $1.25.