How Does Your Experience Modifier Impact Your Insurance Rates?

Insurance companies use your experience modifier to adjust the base premium rate for your workers’ compensation policy. A higher experience mod means you’ll typically pay more for coverage, while a lower mod can result in substantial savings.
 

To put it into perspective, here is an illustrative example:

  • If your workers’ compensation base premium is $100,000 and your experience modifier is 1.2, your adjusted premium will be $120,000.
  • Conversely, if your mod is 0.8, your adjusted premium will be $80,000.
     

This means your experience modifier can have a significant impact on your annual workers’ compensation insurance costs.