What is a Workers Compensation Experience Modifier and why is it important to me?

The Experience Modifier, or “mod”, is a rating assigned to a Contractor by his/her insurance carrier. It is based on the contractors safety and loss record over the past five years. The mod is a good indicator of the effectiveness of the CM’s safety program, and is used to adjust the rate paid by the CM for insurance. A mod of 1.0 means no adjustment, a mod of 1.2 means a premium of 20% is being added to the base insurance cost, while a mod of .80 represents a discount of 20%. A CM with a lower mod has a lower operating cost and superior safety record, both essential attributes.