Your Experience Modifier : How to Control it, and Why You Should
January 23, 2014 Leave a comment
Most people don’t often think of their workers’ compensation policy until they pay their premium or file a claim. You may be surprised to learn that you can take small steps during the year to save money when you renew your policy. Your experience modifier (e-mod) is one of the keys.
In part one of this two-part series, I explained what an e-mod is. In this installment, I will give you tips for controlling your e-mod and your workers’ comp premium.
Prevent workplace accidents
The best way to reduce an e-mod is to reduce losses. The best way to reduce losses is to prevent accidents. Employers have access to thousands of free workplace safety materials through the Occupational Safety and Health Administration, the Texas Department of Insurance and Texas Mutual Insurance Company.
Focus on return-to-work
When on-the-job injuries force employees to miss work, some employers react by replacing them and moving on with business as usual. That approach is costly for both parties.
A return-to-work process helps injured workers return to productive employment. If they are unable to perform all of their normal job duties, the process provides alternative productive work they can do while they recover.
Employers who join a workers’ comp health care network have access to additional return-to-work services.
Help fight fraud
By 2015, fraud will cost the property and casualty insurance industry $80 billion a year. Those costs will trickle down to everyone in the form of higher premiums. Employers can help insurance carriers fight fraud and its cascading effects if they learn the red flags.
Learn your role in subrogation
If a third party contributed to an on-the-job accident, your insurance company may be able to recover some or all of the costs from the third party. The process is called subrogation, and it can help reduce your claim costs and your premium. Most subrogation recoveries involve vehicles, products or premises. You can facilitate the subrogation process if you know what to look for.
Come to a free workshop
If you are an insurance agent who wants to learn more about e-mods, class codes and other workers’ compensation topics, come to a free Texas Mutual workshop. You will earn 3.5 CE credits for attending.
Texas Mutual also hosts free workshops for employers. Topics include fighting workers’ comp fraud, preventing workplace accidents and managing claims.
About the author
Shelly Horelica is a certified insurance counselor with 25 years’ experience in workers’ compensation insurance. As a senior marketing specialist, Shelly partners with independent insurance agents across the state and helps them get the most value for their clients’ premium dollars. Shelly shares her expertise with agents as a presenter at Texas Mutual’s free workers’ comp workshops.