3 ways to lower your workers’ comp premium without getting a new quote

Published by: Tanner Carlson | Published on: 22 May, 2023
3 ways to lower your workers’ comp premium without getting a new quote

Workers’ compensation is essential for businesses of all sizes and is often required by law. It can be a significant expense, but it is important to have in place to protect your employees and your business.

If you’re looking for ways to lower your workers’ compensation premium, there are a few things you can do without getting a new quote.

  1. Implement a safety program. This is one of the most important things you can do to lower your workers’ compensation premium. The better your safety record, the lower your premium will be. There are a number of things you can do to improve your safety record, such as providing safety training to your employees, conducting regular safety inspections, and implementing safety procedures.
  2. Create a return-to-work program. Return-to-work programs can help injured employees heal faster, save money, and boost productivity. Ask your agent for help developing a return-to-work program for your organization. Learn more here.
  3. Let BKCW conduct a claims audit. A large portion of premium audits are actually incorrect, and there are quick wins to be had by simply letting an agent review your claims history and advocate on your behalf with your work comp carrier.
Your workers’ compensation premium is based on a modification score called an eMod. This is a score from -1 to +1 that acts as a multiplier for your workers’ compensation premium. Here are some key terms to know.
  • Work comp mod. An EMR or experience modification rating (also called a MOD rating or factor) is used to price workers’ compensation insurance premiums. Think of it like your credit score or car driving history, where third parties consider your history as an indication of future risk.
  • Base mod. The base mod, or average mod, is always 1.00.
  • Minimum mod. The minimum mod is a company’s mod and premium value if the company has zero losses; it is a real and attainable score. This value is unique to each company and may vary each year due to unique payroll and industry factors. Think best-case scenario.
  • Controllable mod. This shows how much a company could have saved if it had zero losses in the experience rating period. This is used to show the financial impact of that year’s losses and claims.
By working with a risk consultant with a thorough understanding of eMod ratings who can go to bat for you with your carrier, your business can reduce premiums. Additionally, your agent can look at your claims history and predict your eMod score for budget forecasting purposes.

If you have any questions about your workers’ comp premiums or if you are looking for someone to help you out with a claims review, reach out to info@bkcw.com or visit bkcw.com.