ASK THE EXPERT:Top 10 Ways to Control Your MOD
Your experience modification factor, or mod, is an important component used in calculating your workers’ compensation premium each policy year.
f you can control your mod, you can lower your premiums — so we’ve gathered some helpful tips to help you impact your workers’ compensation programs throughout the year.
1. Investigate Employee accidents immediately and thoroughly; take corrective action to eliminate hazards at the workplace.
2. Report all claims to your carrier immediately. Alert the carrier to any serious, potentially serious or suspect claims. Frequently monitor the status of the claim, check the reserves of the claim, and communicate with the adjuster to close them as quickly as possible. This also includes claim reviews with carrier.
3. Take an aggressive approach to providing light duty/return to work to all injured employees upon their release from treatment. Supervise light duty employees to ensure their conformance with restrictions. Cost less in the mod when employees are back to the workplace.
4. In serious cases that involve lost time, communicate with the claims adjuster to demonstrate your interest in returning the injured employee back to gainful employment.
5. Set safety performance goals for those with supervisory responsibility. Success in achieving safety goals and low workers’ compensation incidents should be used as one measure during performance appraisals.
6. Develop a written safety program, and train employees in their responsibilities by department for safety. Incorporate a written policy into the program that holds employees accountable for not performing or rewards them for correctly following safety procedures.
7. Frequently communicate with employees, both formally and informally, regarding the importance of safety. Newsletters, e-blasts, staff meetings, and adopt safety committees that meet at least quarterly. These are ways to create the culture and awareness of a safe injury-free workplace.
8. Take safety a priority — senior management must be visible in the safety effort and must support improvement.
9. Evaluate accident history and larger claims at least quarterly. Look for trends in experience, and take corrective action on any issues that need improvement.
10. First aid claims with no lost time and up to 2 physician visits can be paid by your business. For example, cut, scrape, and minor injury. If these first aid claims go into your work comp carrier, your experience mod when calculated could be higher.
By understanding your experience modification and all the ingredients, you could have some positive workers’ compensation trends for the upcoming year! If you need assistance, please contact your agent/broker or any of the CH team. We are in your corner!