Mod Factor Plays Key Role in Work Comp Prices

Given today's tough economic conditions, Baltimore insurance agent Tom Carroll of Diversified Insurance Industries says, too few employers understand that their workers' compensation modification factor - a number that directly affects premium costs - has a "perfect score" they should working to reach.

The mod factor, calculated using a company's payroll and loss experience, is used to weight the premiums a company pays for workers' comp insurance. An average mod is 1.0, but "what's really important is for a company to know its minimum mod." The minimum mod varies based on a company's industry and payroll, but any company can eventually reach its minimum mod by adopting excellent practices in loss control and prevention.

Diversified is helping companies identify their minimum mod and analyze their mod to gain insight into loss trends. The agency helps clients understand how issues such as diligent hiring practices will decrease claim frequency, how an injury management coordinator will improve outcomes of injuries that occur, how to prepare for a premium audit, and much more. Clients receive a custom plan that incorporates these elements and enables them to gain control over their experience modification.

Diversified provides these services through WorkCompEdge, a web-based service dedicated to helping employers reduce workers comp costs and improve productivity.

As a Member Agency of WorkCompEdge, Diversified "goes the extra mile to provide clients with resources and value beyond standard workers compensation insurance policies," said WorkCompEdge CEO Tim Coomer.

Carroll invites interested companies to contact him for a complimentary mod analysis at (410) 319-0600 or WCE@DII-ins.com. Employers are also encouraged to read the company's blog at WorkCompEdge.com.