An XMOD is a rating system which determines what you will pay for your Workers Compensation. Depending on your state, and your classification code (type of work), you will pay a base rate for Workers Compensation that will factor in to your XMOD. Let’s say you are a New Business security guard company in California, paying $10.00 per $100 in payroll. You will start will an XMOD of 100, this means you are paying $1.00 for $1.00 on your insurance. But on the other hand, if you’ve had a few bad claims on your policy over the course of a year, your XMOD would go up. If your XMOD is 140, that means you are paying an extra $0.40 for every $1.00 of insurance, for a total of $1.40 for every dollar (40% increase). These claims can take a while to close out and fall off your Loss Runs, especially if you are not with a broker that specializes in your industry and knows exactly how to handle these claims. Our goal is to provide knowledge and empower our clients to have the safest work environment possible. This is because your XMOD can fall below 100, meaning you will be SAVING money for every dollar of insurance. Let’s say you have a few years of no losses, running a safe work environment, and you end up with an XMOD of 80. This means you will be paying $0.80 for every $1.00 of insurance (20% savings).Insurance is already confusing enough, figuring out how much you pay and why. The XMOD throws another wrench into that problem. This is the exact reason why its so important to have an Insurance Advisor that not only specializes in your industry, but has full knowledge about XMODs, insurance claims, and most importantly how to close them as fast as possible. Next time it comes time for renewal, instead of just shopping your insurance, shop your broker to find out who can help you save cost on your Workers Compensation with extensive knowledge of closing claims and XMODs.
