Your company’s Experience Modification or Ex Mod affects the rates the company will have to pay for Workers Compensation insurance. If you’re a safety professional, Ex Mod also provides an opportunity to demonstrate the importance of what you do.
Know What Safety Is Worth
Ex Mod is the ratio of actual workers compensation losses your company has experienced versus the losses that your company would be expected to have. If it’s higher than normal, insurance rates can be increased by additional surcharges. If it’s lower, they can be reduced by credits that offset some of the company’s premiums. The calculation takes several factors into account, but the main ones are the amount, frequency and severity of workers compensation claims. Since the number of significant incidents affects your company’s Ex Mod, your efforts to increase safety can also affect it. The things you do every day can reduce your company’s workers compensation claims and improve your Ex Mod for years to come. This is powerful proof of the financial benefit of strong safety procedures.
Show What Safety Is Worth
Your company’s management would love to reduce their insurance costs. Reducing the Ex Mod is a concrete way to do that. Since the frequency and seriousness of workplace incidents is a major contributor to Ex Mod, your role as a safety specialist lets you make a clear impact on costs. Communicating this to corporate leadership can enhance your standing and advance your career. Accurately track reductions in incidents, and show how they are related to improved safety procedures and training. By doing so, you can demonstrate how your job contributes to the company’s success.
Persuade Management to Boost Safety and Savings
One way to improve your Ex Mod is to prevent incidents, but another way is to limit the seriousness of the incidents that do occur. While you can’t eliminate all risk, there may be some measures you can take to reduce the severity of the incident and thus the overall size of the workers comp claim. Some of these options will require spending money, and all will require support from management. This could be as simple as developing a policy to be more proactive in dealing with even minor injuries. It could also entail more substantial commitments, like investing in specialized safety training or implementing solutions that make it easier to oversee the progress of existing workers comp claims. The good news is that the clear link between Ex Mod and insurance costs can make it easier for you to make the case that improved safety is worth the investment.
For more information on better safety procedures and training that could improve your safety program while bringing down insurance costs, contact Construction Safety Experts online, or call (919) 463-0669 today!