What are Workers Comp Mod Rates?

Mod Rates for Workers Compensation Insurance

All businesses don’t pay the same rate when it comes to workers compensation insurance. So what’s the difference between certain rates, and how is that all calculated? One of the most important places to look will be your workers comp mod rates.

In Florida, for instance, a baseline workers comp mod rate will be 1.0. This means you pay the full 100% rate as mandated across the state on an industry-wide basis. However, this starting rate can then move up or down after several years.

For a startup business beginning life at 1.0, after three years, the workers comp mod rate can be moved based upon the claims you’ve had in that time period. If you end up with a 1.1 or a .97 or whatever the case may be, that translates to a given percentage of the whole starting figure. In this case, that would be 110% or 97%, respectively.

In Georgia, workers comp pricing is delineated by industry as determined by the National Council on Compensation Insurance, or NCCI. Rates can be as much as 4x higher or lower depending upon the starting rate for a given industry.

From there, there are experience modification ratings, or EMRs, which can be triggered and may provide you with significant savings and value. There may also be a number of exceptions based on your business type or structure, industry and location, and so forth.

Of course, all states have different requirements and specifications, from how they set initial workers comp pricing, to how it may be adjusted, what types of mod rates are in place, and other triggers or factors which may push a price up or down.

That’s why when you want the best deal on workers compensation insurance, it always makes sense to get an experienced hand to help. Call ACI at 407.272.1976 and we’ll help you get a great price on workers comp insurance that matches your needs.

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