When it comes to workers’ compensation premiums, all companies want lower premiums. How can you ensure that your premiums remain low? One way is to invest in risk mitigation to reduce the number of accidents on the job site. One way that your premiums are determined is through your ex mod rate.
Here is what you need to know about ex mods and how to reduce your rate.
What Is an Ex Mod?
Your company’s ex mod is a percentage that indicates your losses compared to other employers in your industry. The ex mod rate is used to determine how to save your company is when you compare it to other companies. Your ex mod rate is directly connected to the number of accidents that occur in your business.
How To Reduce Your Ex Mod Rate
To reduce your ex mod rate, you have to make sure that your current information is accurate. For example, if you have any payroll errors or closed claims that are still reported as open, it can skew your ex mod. If your ex mod is lower than 100, you will have a cheaper rate than the average. However, if you have a higher ex mod, you’ll have higher rates.
When it comes to your ex mod rate, if you can keep it low, your workers’ compensation costs may also be low.