What can be done to reduce an experience rating modification?
Since an experience rating modification compares actual losses to the “average” or expected losses for each classification(s), an employer has a strong incentive to promote workplace safety programs and accident prevention. The experience rating system benefits those employers who have better than the “average” loss experience. Employers who promote and implement workplace safety programs and accident prevention procedures AND thereby reduce their workers compensation losses will realize the benefits of the experience rating system and lower their workers compensation costs. Employers who do not promote and implement workplace safety programs AND thereby fail to reduce their workers compensation losses will increase their workers compensation costs.
