Your Workers Compensation Ex Mod Rate

Has your workers compensation experience modification rate increased dramatically? Do you know what an ex mod rate is?


Experience modifier (experience modification) is a term used in the American insurance business and more specifically in workers' compensation insurance.

It is the adjustment of annual premiums based on previous loss experience. Usually three years of loss experience are used to determine the experience modifier for a workers' compensation policy. This timeframe typically includes the three prior years rather than the immediate past year. For instance, if a policy expired on January 1, 2016, the data included on the Experience modification would comprise the period from January 1, 2014 to January 1, 2017.

Experience modifiers are normally recalculated for an employer annually. Each year, a newer year's data is added to the three-year window of experience used in the calculation, and the oldest year from the prior calculation is dropped off. The other two years’ data in the rating window are also updated on an annual basis.

California's workers' compensation experience rating system - which uses a "modifier" to an employer's workers' compensation insurance rates - called an experience modification or "ex mod".  This is a merit rating system that provides a financial incentive for employers to reduce work-related accidents and the cost of these accidents. California law requires this process, which is administered by the Workers' Compensation Insurance Rating Board, or WCIRB.

This number can help you or hurt you financially, sometimes at the tune of doubling your premiums.  And sometime this number is incorrect... we at the F&I Agency can have an audit performed for you to ensure the number is correct.  

Contact us today at 805-496-6555 or fill out an online quote request on our website.

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