Question: What data goes into the experience mod calculation?

The experience mod uses your loss data and your payrolls. The loss data is reported to the National Council on Compensation Insurance (NCCI) in the middle of your policy year. Losses include both amounts paid and claim reserves. Your payroll data comes from the audits performed by your insurance company at the end of every policy period. The experience mod calculations look back at your last four workers’ compensation policy periods and only use information on the oldest three policies. They do this because claims on your most recent policy may not have been closed and because they have not been reported yet to NCCI. Click here for more information on Workers’ Compensation Insurance Mods.

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