“Experience Modification factors expected to Increase”

Jan. 5, 2012 - PRLog -- In January 2013, NCCI, the organization that calculates your experience modification factor for your Workers’ Compensation policy, will be modifying the formula they use.  This change is expected to increase the premiums for many contractors throughout the state of Florida.  From 2013 – 2015, NCCI will incrementally increase the dollar amount of claims used in the formula to create an employer’s exp mod from $5,000 to $15,000.  (2013 - $10,000; 2014 - $13,500; 2015 - $15,000)

The revised formula, which has not been updated since 1993, will underscore the principle that the frequency of claims will more adversely affect your ultimate premium costs than the severity of a claim.  In other words,  1 large claim of $75,000 will not increase your experience modification factor as much as having 7 claims of $10,000 each.

With profit margins continuing to be squeezed, it will be increasingly important to enhance your training programs, avoid having claims, and have your experience modification factor double checked for accuracy.

Smart companies are turning to tools and systems that can streamline their training programs to reduce their risk and ultimate operational costs.  For more information, contact Rick Dalrymple at 407-998-4108 or email at Rick.Dalrymple@ioausa.com       www.RichardDalrymple.com

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