What is a mod in a work comp insurance policy

What is a MOD?

MOD is short for Experience Rating Modification.

A MOD is a multiplier or a “score” applied to the premium of a qualifying work comp insurance policy and provides an incentive for accident prevention.

The MOD score represents either a discount or a surcharge.

For example, a .80 MOD score means a company has a good safety record that merits a 20% premium discount.

Conversely, lets say a company has a 1.31 MOD score. It means that company’s accident rate is above the industry norm. Their 1.31 MOD will increase their premium by 31%!

Depending upon the state, a MOD score is calculated once a year by either NCCI or a state bureau.

How is a MOD calculated?

A company’s payroll and claim data for the oldest three of the last four years are analyzed. That data is compared to other companies in their same industry and state.  So ABC Roofing Company in Florida will be compared to the Florida roofing industry average. So Sally Smith’s Sew Shop in New York will be compared to the New York sewing industry average.

If you have questions about MODs or need a new work comp policy, please call a licensed insurance broker at 1-800-860-9467.