Workers' compensation
Experience mods explained
The experience modification factor adjusts premium based on your own claims compared with similar employers.
- Claim frequency affects mods more than a single large claim in many formulas
- Medical-only claims may be discounted in some states
- Accurate payroll reporting keeps the calculation fair
- Return-to-work programs reduce lost-time costs
Frequently asked questions
When do I get an experience mod?
Once your premium reaches a state's eligibility threshold over the experience period.
What does a 1.00 mod mean?
Average expected experience; below lowers premium, above raises it.
How long do claims affect it?
Typically three policy years, excluding the most recent.
More coverage and guides
- Workers' compensation insurance
- Employers' liability
- Class codes and payroll
- Certificates and compliance
- Multi-state payroll
- Lower-hazard employer classes
- Class codes by industry
- Experience mods explained
- Return-to-work programs
- Premium audits
- Application checklist
Last updated October 15, 2026 · How we research