What is an Experience Modification ("MOD")? How is a MOD determined?

An Experience Mod (sometimes called a “MOD” or “X-MOD”) is an adjustment or modification to the pricing of your coverage that is specific to a particular business and is based upon your previous claim experience as compared to other businesses of the same size and scope of operations. This factor helps determine your rate and your policy premium. Generally, a business must be in operation a minimum of three years and have generated sufficient premium in a single year for a MOD to be assigned. Since MODs are unique to each business, the organization that calculates the number (either NCCI or the state’s Workers’ Compensation Bureau) will associate the factor with the' + " Employer’s individual Federal Employer Identification Number (FEIN). The MOD is determined by comparing your loss (claims) data to that of other employers with the same classification codes and is expressed as either a credit or debit on your policy. In general, a MOD that is less than 1 is better than average (and earns a credit); while a MOD that is greater than 1 is worse than average (and earns a debit).

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