Why Reviewing Your Insurance Experience Mod Matters for Your Business

If you run a business and have workers’ compensation insurance, there’s something important you should keep an eye on: your Experience Modification Rate, or Experience Mod for short. This number plays a big role in how much you pay for insurance — and understanding it can save your business money.

What is an Experience Mod?

Your Experience Mod is a number used by insurance companies to measure how risky your business is compared to others in your industry. It’s based on your company’s history of workers’ comp claims. If your business has fewer and less severe claims than average, your Experience Mod will be lower — and your insurance costs could go down. But if you’ve had more claims than most, your rate will be higher, and so will your premiums.

Why Reviewing Your Insurance Experience Mod Matters

Reviewing your Experience Mod regularly helps you spot any mistakes in your claims history and gives you a chance to improve safety practices. By reducing injuries and managing claims well, you can lower your Experience Mod over time. That means lower costs, better protection, and a safer workplace.

Final Thoughts

Don’t ignore your Experience Mod — it’s more than just a number. Make it part of your regular insurance review to make sure your coverage and costs match your business’s performance. A little attention now can lead to big savings later.

To review your current coverage contact our team at Craddock Insurance Services today!