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Experienced With Workers Comp

You CAN improve your current Worker's Comp program.

It takes expertise, knowledge and the right approach to improve your program.

We are ready, are you?

Every system has its faults and errors. The Workers Compensation system is no different. Your rates and experience modification are a results on numbers someone put in the system.

Your business has the experience of providing a safe environment and low claims. Let’s leverage that experience by getting to the companies and programs that will reward you for your excellent record. Contact us to find out more:

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Reduce Your Experience Modification Rate

Understanding your experience modification rating (Experience Mod) and monitoring it regularly is key in reducing your Workers' Compensation costs. It is also an excellent measure of how your loss prevention and control practices stack up to others in your industry.

Companies who effectively manage their Safety Programs not only understand how this works but also have assigned someone to monitor this on a regular basis. It has a direct correlation to how much you pay in Workers' Compensation Premiums.

Many safety-conscious corporations are refusing to use the service of venders or subcontractors who do not control their Experience Mod or have an experience modification in excess of the industry average.

What is an Experience Mod?

Simply speaking, your Experience Mod compares your Workers’ Compensation claims experience to other employers of similar size operating in the same type of business. Most employers who have an annual premium in excess of $3,000 will receive an Experience Mod.

Your Experience Mod is calculated by the National Council on Compensation Insurance (NCCI) or, in some states, an independent agency. Your independent insurance agent can advise you where your Experience Mod is calculated.

In general, each year insurance carriers report to the calculating agency your class codes, payrolls, and losses for the last five years. The computing agency uses three complete years of data ending one year prior to the effective date of the rating period. For example, a rating in 2005 normally will not use 2004 but would include 2003, 2002, and 2001 in the formula.

While the formula may appear complex, it compares your specific payrolls and losses to the industry average losses for like business of similar size. If you are at the industry average, your Experience Mod is a 1.0. If your experience is 20% better than average, your Experience Mod would be a .80 or 20% worse at 1.20.

How does this affect my premium?

It makes sense to reward companies that practice effective safety and claims management techniques over those who do not. In effect, the Experience Mod does just that. The example below illustrates the difference between a company with a .80 Experience Mod and a company with a 1.20 Experience Mod.

Medical-only claims

Claims that require medical treatment only are usually less severe, so employers should not be penalized when they occur. Consequently, any medical-only claims are reduced by 70% before they enter the formula. You can take advantage of this by ensuring that injured employees remain at work when possible or return to work within the waiting period.

This is where an effective claims management and return to work program can have a dramatic effect. Should you need help in establishing a program, our Western National Loss Control Consultants can help.

Lost time claims

The first $5,000 of a lost time claim is counted at full value. The dollar amounts after $5,000 is discounted. There is also a large claim cap limit to protect you from a catastrophic loss. Because the first $5,000 of each loss goes in the formula dollar-for-dollar, severity is a factor. A single claim valued at $20,000 has less effect on your Experience Mod then 10 claims valued at $2,000. Companies seeking to minimize their Workers' Compensation premiums should focus their safety efforts on reducing the frequency of lost time claims.

It is also recommended that companies review their losses periodically. Pay particular attention to open claims with outstanding reserves. Work with your claims administrator to bring these claims to closure. In some instances, outstanding claims may be closed resulting in reserve reductions that ultimately may affect your Experience Mod. Don’t forget about your current year’s claims. These usually present the greatest opportunity for cost reductions. Remember this year's claims will affect your Experience Mod next year.

Where do I find my Experience Mod?

Typically you will receive an Experience Modification Rating Sheet each year prior to your policy renewal date. If you are unclear of your company's current Experience Mod, your insurance agent can help you locate this. Your Experience Mod is also listed on the declarations pages of your Workers’ Compensation policy.

How do I learn more about the Experience Mod Formula?

The National Council on Compensation Insurance (NCCI) has published a booklet entitled "ABCs of Experience Rating". It is available on their website at www.ncci.com. This brochure explains the experience rating plan in greater detail We also have simple documents that can help you better understand this system and how we can help.

Contact us for a complete evaluation of your Experience modification.


There are over 50 Insurance Companies that write the majority share of Workers Compensation insurance in California. There can be as much as a 225% spread between the Highest Rates and the Lowest Rates. Somebody is getting the lowest rates. Shouldn't it be you?

Example, ACE Americans unmodified Clerical rate (8810) is $0.48, State Fund is $1.03 and ZNat Insurance is $1.73. Depending on the specifics of your company size, payroll, and experience many other credits can be applied. Many times up to 50%.

We review ALL of the companies that will offer insurance for your type of business. We narrow it down to a few select companies then we continue to negotiate additional credits for you. The net result is, you will have the lowest rate available. Find out here if your rate is the lowest.

Rate Comparison


Dividend Programs are back! We have several options for dividend and equity programs available. If you are a better than average risk you should get some of your premium back. Many of our programs offer 2.5% of your paid payroll back to you for a claim free year in the form of a “Safety Incentive”. Consider the benefits if you pay $1,000,000 in payroll, you could get back up to $25,000.

Even if you have some small claims they will be deducted from the Safety Incentive 1st and you will still get back the balance. Some of our companies pay dividend on over 80% of their insured because they do such a good job at cost containment and loss control.

Here is a list of Safety Incentive Checks that one of our Carriers has recently issued.


Here's a list of the most recent round of Safety Incentive checks earned by clients serviced out of a local branch:

Industry Amount
General Contractor $7,853.78
Events Company $3,901.85
Trucking $7,652.71
Trucking $37,030.94
Inflatables Company $4,045.75
Gas/Service Station $6,744.88
Packaging Company $13,894.46
Gas/Service Station $5,185.26
Chemical Company $26,264.51
Garage Door Company $8,006.67
Nursing Home(s) $34,974.06
Bag Mfg. $64,592.34
Fork Lift Service $2,343.99
Warehousing Company $9,779.03
Window Cleaning $5,709.10
Restoration Contractor $20,989.20
Electrician $1,387.36
Sign Company $1,609.91
Storage $5,726.76
Towing Company $10,544.01

Want to know more about how you can get a Dividend Program? Call or Contact us today.

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Improve Your Safety Program

The following are some key elements that every formal safety program should have:

Do you need help putting together a OSHA compliant safety program? We can help.

Workers Comp Safety Program