Lowering Workers’ Compensation – How to use Safety and Compliance Software to Protect Your Dealership and Employees while Decreasing Insurance Rates, from NCM Institute.
Workers’ Compensation insurance was designed to ensure adequate employee reimbursement from an on-the-job injury, as well as minimize lawsuits between employers and employees in the workplace. Beneficial to both employers and employees, but paid for by employers, Workers’ Compensation can be costly; research shows that over the past ten years Workers’ Compensation rates in 26 states have risen 3% per year. Continued increases are expected over the next several years. However, dealers don’t have to give in to this increase; despite the rise in costs, dealers can impact their premiums. How? By reducing their Experience Modifier (Ex-Mod).
To understand how to reduce an Ex-Mod, it is important to first understand how Workers’ Compensation is determined. Workers’ Compensation is comprised of two parts:
- The size of the dealership’s payroll and the employee job classifications. (Dealers cannot reduce this portion of Workers’ Compensation.)
- The dealership’s Experience Modifier (Ex-Mod). Dealers can impact and change the cost of their Workers’ Compensation insurance by reducing their Ex-Mod.