What Is the Experience Modification Rate?
The experience modification rate, or "mod rate," is a multiplier applied to a company's base workers' compensation premium. It reflects the employer's past loss history relative to industry averages. A mod rate below 1.0 lowers premiums; above 1.0 raises them.
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Where the Mod Rate Is Published
Most states publish mod rates on their workers' compensation agency or insurance department website. The rate is typically listed by employer identification number (EIN) or by a unique employer reference code.
Steps to Locate Your Mod Rate
- Identify the State Agency: Find the official workers' compensation agency website for the state where your business operates.
- Use the Employer Search Tool: Enter your EIN, company name, or reference code into the search box. The result page displays the current mod rate and historical changes.
- Check Employer Portal: Many carriers provide a dedicated portal where employers can view their mod rate, claims history, and premium statements.
- Review Insurance Policy Documents: The mod rate is printed on policy summaries and renewal notices; it is also referenced in the underwriting notes.
Cross‑Referencing with Your Carrier
Insurance carriers calculate the mod rate using state data but may adjust it slightly for underwriting considerations. Contact your carrier's underwriting office for a confirmation of the rate they use in your premium quotes.
Common Pitfalls to Avoid
Do not rely solely on third‑party websites that aggregate mod rates; they may present outdated figures. Always verify against the state agency's official record or the carrier's policy documentation.
When to Update Your Mod Rate
After significant claims activity—such as a high‑value claim or a series of incidents—your mod rate may shift. Submit any new claim information promptly to the state agency or carrier to ensure accurate recalculations.