Answer:
The experience mod is the part of your workers compensation insurance premium that you control. It is a ratio of your actual losses to losses that are to be expected in an operation of your size (payroll) and your employment classifications (usually clerical).
If your losses are above "average" your mod will be greater than 1.00. If your losses are below average, your mod will be below 1.00. Modifications as low as .80 are not uncommon in the banking industry.
Your experience mod is multiplied by your premium to generate a surcharge (mods over 1.00) or a credit (mods less than 1.00).
More information and an analysis of your mod is available at http://www.modmanager.com.
First published on BankersOnline.com 04/21/03
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