Do you know enough about Experience Mods?

by | Jul 18, 2013 | Experience Mod, Frank Pennachio, Workers Compensation

This week we are sharing a blog written by our friend Frank Pennachio, Co-Founder at Oceanus Partners formerly The WorkComp Advisory Group.   Frank is an expert on Workers’ Comp and has partnered with FBinsure on many occasions in the past.


It is becoming increasingly common that contractors are prohibited from bidding on jobs if their workers’
compensation Experience Modification Factor (Experience Mod) is greater than 1.00. The Experience Mod has become
a common metric to determine if the contractor runs a safe operation. Thus, it is critical that contractors know how to
manage and reduce their Experience Mod Factor or they may be shut out from business opportunities.
Contractors know that if they have injuries, their Experience Mod goes up, and if they reduce or eliminate injuries, it goes
down. The most obvious solution is to prevent injuries through a focus on safety programs. Certainly, a safe workplace and safe work practices are essential to reducing injuries, but safety programs alone are far from sufficient in driving down injuries and their related costs.  Much more can be done to control the Experience Mod including addressing the following areas:

Effective hiring practices and employee relationships.

Hiring employees who are both mentally and physically fit for the job is a major step in reducing costs. No matter how much attention is given to safety, if employees are not fit to do the job, they will get hurt or re-injured.  READ MORE


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