6 Easy Steps to Help Control Experience Mods
1. Net Deductibles
Net deductibles allow a company to exclude from actual incurred losses amounts paid on claims that are below the deductible amount.
That means if a deductible is $6,000 and a claim costs $7,000, only $1,000 is included in your experience rating data. Unfortunately, this is only available in 15 states at the moment.
2. Injury Triage
Medical treatment isn't always necessary for many injuries. A minor cut or bruise doesn’t need to become a claim.
The use of telephonic nurse triage helps separate claims requiring medical attention from those that may only require self-care. As a result, minor injuries can be kept from becoming official claims, which means they are not included in actual losses.
3. Immediately Implement an Out-of-Service Policy
You can implement this policy in two ways:
Always repair or replace any defective equipment immediately
Place a wire-tie and “out of service” card in every paycheck
Immediately dismiss anyone for violating the tag-out policy
These policies help ensure your employees stay safe, which helps you avoid having to make a claim in the first place.
4. Encourage Identification
A companies employees are vital assets in many ways: from performing the work at hand, providing valuable insight on projects and much more. As the old saying goes, "2 sets of eyes are better than one". Encouraging employees to identify and tag potential hazards in the course of their job duties can be extremely helpful to employers who are trying to control losses and ultimately improve their Ex-Mod. What better group to help identify potential hazards than from the individuals with daily interaction with the equipment, jobsite, or processes.
5. Incentivizing Safety
Incentivizing employees is a progressive way to earn the trust of employees and garner a desire to STAY SAFE. Creating a favorable work environment encourages employees to do their part for the success of the business.
6. Ex-Mod Review
Examining a clients ex-mod should be a routine practice for agents. In some cases data can be mistaken. For example, if the payroll amounts are incorrect, amount of incurred losses shown did not take into account deductible reimbursements (if any) or simple just got it wrong. It is important to do this annually because unfortunately no one will do it for you. The issuing authority is most likely not going to catch every mistake so its crucial to evaluate the ex-mod worksheet each year.