The key to calculating a workers’ compensation premium is the experience modification factor, also known as your mod. Understanding your company’s mod and the data used to obtain it helps you identify ways to minimize your workers’ compensation premium. A number of questions must be answered to understand and control your mod factor. These include:
- Who calculates the mod factor?
- How is it calculated?
- How does it affect my premium?
- What is the experience rating period?
- How can I control my mod?