Free tool
What is your experience mod costing you?
Your experience modification multiplies your premium. Above 1.00 you are paying a surcharge; below it you are getting a credit. This works out how much, using your own numbers — nothing is looked up and nothing is estimated on your behalf.
01 — Your numbers
Enter what you are paying now
| Manual premium (at a 1.00 mod) | |
|---|---|
| What you pay at your current mod | |
This is arithmetic on the figures you entered, not a quote. Your actual premium also moves with schedule credits, carrier deviations, taxes and assessments.
02 — The arithmetic
How this is worked out
There is nothing hidden here. Manual premium is what the same coverage would cost at a mod of 1.00, so dividing your premium by your mod recovers it. The gap between that and what you actually pay is what the mod is doing to you.
manual premium = current premium ÷ current mod cost of the mod = current premium − manual premium premium at a target mod = manual premium × target mod
A mod of 1.30 means you pay 30 percent above manual premium for identical work. A mod of 0.85 means you pay 15 percent below it. The multiplier is calculated by a rating bureau from three years of payroll and losses — not by your carrier, and not by us.
03 — What to do about it
A mod is only as good as the data underneath it
The mod is arithmetic performed on payroll by class code and claim values that the carrier reported to the rating bureau. Both arrive with errors often enough to be worth checking: payroll booked to the wrong classification, claims still carried at reserve values long after they closed, and claims that should not have been in the calculation at all.
Send us your figures and we will audit the data behind your mod against your loss runs and tell you whether it is right. If it is wrong, correcting it at the bureau is what lowers the premium.