There are many working components involved in a single insurance policy. While you may have a general understanding of the basics, such as the risks of your industry and which coverage options aim to reduce your exposures, you may also not know about some of the other factors that can influence your policy. For example, experience modification rates can often play a big part in how protected you feel. Take a look at these points to gain insight into your options and understand this factor better.
What Is an Ex Modification Factor?
Essentially, an ex mod factor is related to your workers’ compensation policy. The mod is meant to compare your history of claims with similar companies across your industry. This is done in order to provide unique coverage and rates that accurately reflect your needs. The mod also tends to provide more control to the insured, which means that you will be able to manage your costs in a way that feels accurate. Points that can influence your ex modification rate can include:
- The size of your business
- How many workers you employ
- Your history of compensation claims
How Your Mod Impacts Your Insurance
While there are many straightforward aspects of insuring a business, there are also plenty of points you may not fully understand. Take time to learn about your ex modification rate and see what it can do for your future.