Who qualifies?Īll employers whose premium before discounts averages $4,000 or more a year for a three-year period are eligible for an experience modification rating. The e-mod stays with the business even if the business is sold. The same factors are used to calculate each employer’s experience modification regardless of which insurance company provides coverage.
The National Council on Compensation Insurance (NCCI), based in Florida, computes experience ratings for all businesses and industries in Colorado.
If your company’s experience is less costly than the industry average, you will receive a credit e-mod, or discount, on your premium. If your company’s loss experience is more costly on the average than other company’s loss experience in your industry, the result is a debit e-mod, or surcharge on premiums. The e-mod represents either a credit or debit that is applied to the premium before discounts. What is an experience modification factor?Īn experience modifier (e-mod) is a multiplier applied to the premium of a qualifying policy and provides an incentive for loss prevention. An experience modification, commonly called an "e-mod," is an important factor used to adjust your workers’ compensation premium.
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