Experience Rating Corrections

Do you believe your company's experience rating is unfairly high based on the number and severity of claims? You are not alone. Many employers share your concerns and many calculations are wrong!

The experience rating (sometimes called experience modification factor, mod, x-mod or e-mod) and Massachusetts ARAP* can increase the cost of workers compensation insurance by as much as half again, or even double the normal premium - click "view our blog" to read on.

In more than 65% of the cases we have reviewed, the policyholder has been overcharged on audit for either an incorrect mod or another mistake or miscalculation.

"Trust but verify." The insurance carrier is not trying to cheat policyholders. But they will charge the highest available premium and uncertainties will usually resolve in their favor. The carrier will use whatever mod that was issued by the rating bureau (national (NCCI) or state rating authority). The carrier does not check for its accuracy.

It is always a good idea to have an independent qualified insurance professional review the past few years for mistakes and overcharges.

*ARAP (all risk adjustment program) is a second modifier used for experience rated policies in Massachusetts that are over 1.00. The normal experience rating is multiplied by the ARAP to arrive at the effective premium modification. For example, if the mod is 1.27 and the ARAP is 1.18, the effective modification is 1.50.

Please see “Workers Comp Insurance refunds – click here” at the very bottom of this page to see our informative web page. Your company may have been overcharged by the insurance carrier in the past. We get your money back!