If your Colorado business pays enough in workers’ compensation premium, your rate isn’t based only on your industry. It’s adjusted by your experience modification factor, or “mod,” which compares your claims history with similar businesses. Lowering your mod can save your business real money.
Who Calculates Mods in Colorado
Colorado uses the National Council on Compensation Insurance (NCCI) as its workers’ compensation rating organization. NCCI calculates mods for eligible Colorado employers using payroll and claims data reported by insurers, and it publishes the premium thresholds a business must meet to qualify.
How the Mod Works
- A mod of 1.00 is average.
- A mod below 1.00, such as 0.85, means a 15% credit on your premium.
- A mod above 1.00, such as 1.25, means a 25% surcharge.
The calculation generally uses three years of payroll and claims, excluding the most recent year. Claim frequency affects the mod more than claim severity, so several small claims can hurt more than one larger claim.
Ways to Lower Your Mod
- Report injuries right away. Colorado employees should report injuries in writing within four working days, and fast reporting helps control costs.
- Use a designated provider list. Colorado employers can give injured workers a list of designated medical providers, which helps coordinate care.
- Return-to-work programs. Modified duty reduces lost-time costs.
- Safety training focused on your most common injuries.
- Review your mod worksheet for errors in payroll or claims data.
Learn more about workers’ compensation insurance.
Have questions about your coverage? Call Johnson Insurance Agency at 303-768-8130 or stop by our office at 14 Inverness Dr. E, Suite G236, in Englewood. We compare coverage from multiple carriers for families and businesses across the Denver metro area and Colorado.
Sources
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