Delaware Business Insurance Update from CNC Insurance Associates Inc. "Work Comp Experience Rating Risk Management" 1-27-15

Every small business owner who has enough work comp premium to establish an experience mod, knows the importance of that number being under 1.0. If the mod goes over 1.0 then it could affect your ability to get contracts or to stay on contracts. The work comp experience mod is used as an indicator of your safety. That is why most job contracts require mods under 1.0.
Risk management procedures are a must in order to keep a mod under 1.0. Enclosed are a few ideas to accomplish this.
1) Update and review safety practices to avoid and reduce work comp claims
2) Review losses and reserves with your insurance broker on a continuous basis.
3) Double check the math calculation on the mod formula to make sure it is correct
4) Double check the  loss reporting data from the insurance company to the Comp Bureau to assure accuracy
5) Make sure your payroll audits are accurate and have been reported to the Comp Bureau correctly

These are just some of the risk management processes to get you started on work comp mod management. By all means involve your insurance and risk professionals to help you along the way. Until next time be careful out there and know your risks.

G. Kevin Nemith, President CNC Insurance Assoc. & The Small Business Insurance Center
Serving DE, MD, PA, VA & NJ
www.cncinsurance.com
www.bizinsurancetv.org

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