WCWBLAST v6524: Understanding Preliminary Experience Mods for Workers’ Compensation Insurance

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Hey, it’s Jeremy from Ochsner Insurance, and welcome to Work Comp Wednesday, the WCW Blast. Today, we’re diving into preliminary experience mods and their importance in managing your workers’ compensation insurance and overall total cost of risk.

What is a Preliminary Experience Mod?

A preliminary experience mod is an early report provided by the National Council on Compensation Insurance (NCCI) in NCCI states. This report predicts your experience modification factor (mod) for the upcoming policy term. It’s crucial because the experience mod directly influences the premium you pay for workers’ compensation insurance.

Why Does the Preliminary Experience Mod Matter?

The experience mod acts as a multiplier on your workers’ compensation insurance premium. For example, if your premium is $100,000 and your mod is 1.25, your adjusted premium becomes $125,000. Therefore, understanding and managing your mod is essential to controlling your insurance costs.

When is the Preliminary Experience Mod Available?

The preliminary experience mod is typically released four to six months before your workers’ compensation policy renews. This timing allows you to review and address any discrepancies before they affect your renewal premium.

Common Issues with Experience Mods

Errors in claims values, payroll reporting inaccuracies, and other factors can negatively impact your experience mod. It’s estimated that up to 65% of experience mods contain inaccuracies. These errors can lead to higher premiums, significantly increasing your insurance costs and Total Cost of Risk.

Benefits of Reviewing Your Preliminary Experience Mod
  • Cost Planning: Understanding your mod helps you budget for the upcoming year’s workers’ compensation expenses.
  • Error Correction: Identifying and correcting errors before renewal can prevent unnecessary premium increases.
  • Strategic Planning: Allows for strategic planning and risk management to minimize future costs.

Steps to Take

  1. Review Your Preliminary Mod: Look for any discrepancies in claims values, payroll reporting, and other factors.
  2. Plan Ahead: Use the information to plan your budget and forecast expenses.
  3. Correct Errors: Address any issues before they affect your renewal premium.
Getting Help

If this process sounds daunting or if you want to ensure accuracy, consider reaching out to a professional. At Ochsner Insurance, we can help you review your preliminary experience mod, identify errors, and implement strategies to minimize your total cost of risk. Book a time with us by using our calendar link.


Reviewing your preliminary experience mod is a proactive step in managing your workers’ compensation costs. By addressing potential errors and planning strategically, you can save significant amounts on your insurance premiums.

Thanks for tuning in to this Work Comp Wednesday blast. We hope you found this information valuable. If you have any questions or need assistance, give us a call at Ochsner Insurance. Like and share this content, and here’s to your success!

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