Experience Modification Review
Your Experience Modification is a value that is calculated by the NYS Workers Compensation Board, or your insurance company that compares how your accidents (frequency and severity) compare to the rest of the businesses in your industry. Your insurance rates are based on this number. 1.0 is industry average. Anything lower, than 1.0 means that your company is receiving a discount on you insurance rates and anything higher than 1.0 you are paying a surcharge for the same insurance.
The amount of money that is set aside by the insurance company for accidents to pay for claims, known as the Reserve, is the main factor that is used in calculating the experience mod. The higher the reserve, the more that a claim affects your mod and your premium.
Insurance companies have no good reason to make sure that the reserves are correct on accident cases until the claim has been fully paid. Keeping reserves on cases as high as possible, or carrying a high reserve on your record after the claim has been fully paid, will drive up your experience mod and your premium.
We will review your accidents to see if the reserves are correct, and if they are not we will fight to get them corrected and have your modification lowered.