Look’s like we’ve done it again!

When we got the news last year that our Experience Modification Rate (EMR) had dropped to a .99, we were ecstatic. You may have seen the blog post we made about it back then…

Well if last year was good, this year is great as the trend continues with the Signal Group posting a new low EMR of .85!

“Safety” Dave Asselin has once again reset the bar for us in our goal to be the safest and strongest specialty electrical contractor in the state of Florida. For all the credit he is due, Dave is quick to recognize that it’s not only his efforts but the efforts of the enitre team which produce these kind of results. He says, “I wish I could take all of the ‘blame’ on that, but I know the truth, and the guys in the field are doin a damn good job of being consciences of their own safety and the safety of their team mates so I give them all the credit.”

He says, “I wish I could take all of the ‘blame’ on that, but I know the truth, and the guys in the field are doin a damn good job of being consciences of their own safety and the safety of their team mates so I give them all the credit.”

Keep up the good work!

What is an Experience Mod?
Simply speaking your Experience Mod compares your workers’ compensation claims experience to other employers of similar size operating in the same type of business. Most employers who have an annual premium in excess of $3,000 will receive an Experience Mod.

Your Experience Mod is calculated by the National Council on Compensation Insurance (NCCI) or in some states an independent agency. Your independent insurance agent can advise you where yours is calculated.

In general, each year insurance carriers report to the calculating agency your class codes, payrolls and losses for the last five years. The computing agency uses three complete years of data ending one year prior to the effective date of the rating period. For example, a rating in 2005 normally will not use 2004 but would include 2003, 2002, and 2001 in the formula.

While the formula may appear complex, it compares your specific payrolls and losses to the industry average losses for like business of similar size. If you are at the industry average, your Experience Mod is a 1.0. If your experience is 20% better then average your Experience Mod would be a .80 or 20% worse 1.20.

How does this affect my premium?
It makes sense to reward companies that practice effective safety and claims management techniques over those who do not. In effect, the Experience Mod does just that. The example below illustrates the difference between a company with a .80 Experience Mod versus a 1.20 Experience Mod.

As you can see from the above example, how you control your Experience Mod can have a big impact on your insurance premium.