Workers’ compensation insurance is a critical component of all business insurance policies. What many business owners don’t know, however, is how the cost of their coverage is calculated. Why do some companies pay higher premiums than others? Part of it has to do with your ex mod rating. Here’s what you should know about ex mod and how it impacts your workers’ comp insurance cost.
What Is Ex Mod Insurance?
Also known as Experience Modification Rate, it is a score assigned to you by the Workers’ Compensation Rating Bureau that helps to determine the total cost of your workers’ compensation insurance. Simply put, it’s a factor that takes into account your previous claims history when calculating your premium.