When you ask, “What is my worker’s compensation experience modification, and how is it calculated,” does your commercial insurance consultant know the answer? If the answer is no, it’s time to switch over to a new consultant, such as those at Risk & Insurance Consultants.

The company’s consultants can answer any questions you may have about workers’ compensation, as well as other types of insurance coverage your business may be seeking.

To answer the prior question, an experience modification is the adjustment of your annual premium based on previous loss experience. Your premium will be either increased or decreased based on this experience.

The employer with average experience will have a modifier of 1.0 and would pay the manual premium. The employer with unsatisfactory loss experience will have a modifier greater than 1.0 and would pay more than the manual premium. However, at the opposite end of the spectrum, the employer with good experience will have a modifier below 1.0 and would pay below the manual premium.

Simple measures may be taken to get discounts on your premium, such as becoming a drug free workplace. Certain rules must be followed to receive the certification, but you will be on your way to higher premium savings and a safer work environment.

In addition, don’t try to save by not including yourself or others on the workers’ compensation policy. This will do the opposite of saving your money. Say you are injured on the job, your personal insurance policies may opt not to cover the claim if the accident is found to be work-related. Rather than taking this route, take advantage of the coverage you provide your employees to protect your own personal financial security.

Now that you are well versed on worker’s compensation experience modification, check out www.riskandinsuranceconsultants.com to learn more!