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Workers Comp Experience Modifier Calculator

Experience modifier adjusts WC premium based on actual loss history.

$

Premium impact

$97,826

Current adjusted premium

$450,000

Target adjusted premium

$352,174

How the math works

Base = premium / current mod. Target = base × target mod. Impact = current − target.

$450k / 1.15 = $391k base × 0.9 = $352k target. $98k premium reduction.

How to Use

  1. Enter WC annual premium.
  2. Enter current mod factor.
  3. Enter expected mod factor.
  4. Read premium impact.

Frequently Asked Questions

Mod factor?

Experience modifier compares your loss history to industry average. 1.00 = at industry average. 0.85 = 15% below (good). 1.25 = 25% above (poor). Premium multiplied by mod factor. Changes annually based on 3-year rolling history.

Improvement?

Safety programs: 10-20% mod reduction over 3 years. Return-to-work programs: 5-15%. Medical management: 5-10%. Loss control engineering: 5-15%. Combined: 15-30% reduction possible with sustained focus.

Cost impact?

Property management with $500k WC premium at 1.2 mod = $600k effective. Reduced to 0.9 mod = $450k. $150k annual savings. Institutional property operators invest heavily in safety programs for this reason.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.

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