If you’ve received a new experience modification rating worksheet and find there has been an increase in your rate or EMR, then you need to contact a workers compensation consultant and schedule a Claim Review. But there’s more…
Through the workers compensation experience rating mechanism every claim will have some effect on the premium an employer pays. That’s right, every claim! Some will carry a great deal of weight and others not so much but the net effect is that on experience rated policies, every claim counts.
To properly understand how all this fits together, an employer must know their perfect experience modification rate or EMR. Every experience rated policy will actually have a perfect mod. You can learn more about the perfect mod by visiting this previous post on our blog. Simply put, the perfect mod is developed when no claims are present in the experience rating period for any given experience rated employer. It will fluctuate from year to year due to individual formula calculation factors but a workers comp consultant can assist you. Once this number is known, an employer may only then begin to recognize the actual impact each claim has on premiums they pay for coverage.
How can you tell if you need a workers compensation claims review?
- If your EMR or Experience Modification Rate is 1.0 or higher;
- If your EMR has gone up, regardless if it is above or below 1.0;
- If you’ve had one workers compensation claim;
- If you are a contractor and securing jobs depends on having a EMR less than 1.0;
- If you use a retrospective rating plan or retro plan;
The point today is that if your experience mod factor has increased or if you’ve had a single workers compensation claim you may benefit from having a claims review conducted. Be sure to contact an independent workers compensation consultant to help!
Hope this helps you out!