FAQ
These are the 13 questions employers ask most about experience mods, premium audits, class codes and refunds. The answers come from an analyst who has reviewed 1,500+ mod worksheets.
How is my experience mod calculated?
Think of your mod as a report card, where 1.0 is average. The rating bureau compares your injury costs with the average for your industry. Costs above average push your mod up and you pay a penalty. Costs below average pull it down and you earn a discount.
What causes workers' comp premium overcharges?
More than half of businesses pay more than they owe, usually because of three failures. Misclassified employees put you in expensive codes you don't belong in. Open claims with inflated reserves push your mod up. Errors in the premium audit charge you for payroll or excluded remuneration you don't owe.
Can I dispute my experience mod?
Yes. If you find an error, you can ask for a correction. In most states you can correct the current mod and up to 2 prior years. The insurer has to fix proven mistakes, but finding them is your job.
What is a unit statistical report?
A unit statistical report, or unit stat, is the snapshot your insurer takes of your policy data: payroll, class codes and injury reserves. It goes to the rating bureau and drives your next experience mod.
What is the most important date in my workers' comp policy?
It's the valuation date, not your renewal date. The data behind your mod is valued 18 months after your policy's inception, and then annually after that. If your claim reserves are inflated when it is reported, your mod can stay artificially high for the next three years.
Is this training only for large companies?
No. It fits any business with 5 or more employees. A single classification error hits a small payroll as hard as a large one.
What if my agent already handles all of this?
Good, because now you'll know what to ask. Many agents are generalists who focus on getting a quote, not on auditing the mod worksheet or the premium audit. If your agent reviews your valuation date and class codes, you'll be able to see it. If not, you can learn the rules yourself.
How long do I have access to the training after I enroll?
You have 3 years of access, for all 3 seats.
Do I need an insurance background to understand this?
No. The course is built for business owners and HR directors, with the jargon stripped out and the steps laid out.
What happens if the auditor changes my classifications during an audit?
Auditors sometimes move payroll into more expensive class codes, but they have legal limits on what they can change. Module 3 shows you those limits so you can push back on changes that aren't allowed.
What is a recovery-at-work program?
A recovery-at-work program brings injured employees back to modified tasks that fit their doctor's restrictions. It keeps injuries from turning into lost-wage payments, which raise your mod and future premiums. In most states a medical-only claim counts in your mod at 30% of its cost, so keeping a claim medical-only matters.
Can I get a refund on premiums I already paid?
Possibly. When you can verify an error, most states allow corrections for the current year and up to 2 prior years, which can mean a refund. The money is yours, but you have to prove the mistake.
What is the difference between a premium audit and an experience mod review?
They are two separate places you can lose money. The premium audit, covered in Module 3, checks your payroll and class codes so you pay the correct base rate. The experience mod review, covered in Module 1, checks the injury data reported to the rating bureau so you aren't paying an unfair penalty.
3.5 hours, 3 seats, $795. If it doesn't earn its keep, the guarantee covers you.
