New info on how to reduce your Workers Comp premiums

DALLAS - May 12, 2014 - PRLog -- Interested in lowering your Worker’s Comp premiums?

April 24, 2014 – Dallas, Texas

We want to welcome our NEW Commercial Lines Agent, Alex Kaplinsky to Kaplinsky Insurance Services.  He is a wealth of knowledge and gave us this update on premium control:

Though more technical, Ms. Shelly Horelica of Texas Mutual, one of our leading Worker’s Compensation carriers, explained, in an article, one of the things that help calculate your premiums.  It is called an Experience Modifier.

An Experience Modifier is how they figure your losses.  Claims are considered losses to the insurance company.  To even qualify for a reduction in premiums, your annual premium must be an average of $5000 over the last 2 or more years or $10,000 during the last year.

How do you calculate an E-Mod (Experience Modifier) for Workers Compensation? It turns out to be really simple, Actual Losses or Claims/ Expected Losses or Claims (for your industry).  A company with no claims can’t use this to reduce premiums.

To paraphrase  Ms. Horelica,  your E-Mod is calculated at 1.00 (i.e. one actual claim for $1000/ one expected claim for $1000) it’s considered average and won’t affect your premium one way or another.   An E-Mod of Less than 1.00 is considered to be a Better Risk for the insurance company and will or can lower your annual premium.  (i.e. one actual claim for $150/ one expected claim for $1000 = an E-Mod of 0.15 much less than 1.0)

Finally an E-mod of Greater than 1.00 is considered to be showing a Worse Risk to the insurance company (i.e. actual claim of $1500/ expected claim of $1000 = E-Mod of 1.5 or greater risk of your company experiencing claims than average).   In this case, your premiums could go up.

So what could you as an employer do to lower your E-Mod and thus lower your premium?

Start or expand a Solid Safety program to reduce your accidents thereby reducing your claims.

Doing Safety Training at least once a year and more frequently for manual workers results in lower premiums by reducing Workers Compensation Claims.  Did your agent ask you about Safety Training when he/she wrote the policy?  Could you be paying less?

For Additional Information contact Alex Kaplinsky, 972-241-9440, alex@kaplinskyfinancial.com