Larger or qualifying Workers’ Compensation accounts may receive an Experience Modification Factor, commonly called:
- Experience Mod
- MOD
- EMR
- Experience Rating
It compares an employer’s actual loss experience with the expected losses of similar businesses.
NCCI describes experience rating as a program using an employer’s actual incurred losses compared with expected losses for similarly classified employers.
Example
A Mod of:
1.00
generally represents the benchmark.
A Mod below:
1.00
can indicate better-than-expected experience.
A Mod above:
1.00
can indicate worse-than-expected loss experience.
The Mod may then adjust the Workers’ Compensation premium.
Read more:NCCI — Experience Rating