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Training Young Workers
Teenagers are twice as likely to be hurt on the job as their adult coworkers. Nationally, four million teenagers start summer jobs each year. Learn more what you as an employer can do to protect young workers. Learn More >
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Click to Download WCF's Summer Safety Posters
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Data Breach Coverage Available for WCF Policyholders
Data security breaches and compromises of customer and employee data continue to be reported at a high frequency. When a breach occurs, be ready to respond quickly and effectively to mitigate your exposure to brand damage and legal liability.
Current insurance products often provide an inadequate solution to the unique challenges posed by data breaches. Beazley, a leading insurer of technology and information security risks, has developed Beazley Breach Response to provide what we believe is the insurance market's most comprehensive solution to privacy breaches and information security exposures.
To learn more about Data Breach coverage or additional products offered by Univantage, please contact your WCF representative, your agent or Univantage at 888.864.8268 or info@univantage.com.
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Emods and Your Bottom Line
When an employer applies for workers compensation insurance, the premium is determined by many factors including classification of payroll, manual premium calculation and adjustments.
One such adjustment is the emod (experience modifier).
Emods are calculated by the National Council on Compensation Insurance (NCCI). Employers must meet certain criteria to qualify for an emod. Generally, employers paying $3,500 in annual premium for two of a three year period, or $7,000 in premium in one year are eligible.
Overall Facts about Emods
· Emods are mandatory for any company that qualifies to be rated.
· Emods are calculated by NCCI, not by insurance carriers.
· Emods are re-rated once a year, usually at policy renewal time.
· Employers retain their emod even if they change insurance carriers.
· Emods can be transferable to new owners if the business is sold.
The emod calculation is generally based on the last three years' losses and payroll per classification excluding the most recent year.
Emods are intended to predict future losses of an individual employer by analyzing its past losses. Generally, the frequency of accidents is a larger component of the emod calculation than the severity or cost of the accidents.
For example, Company A has one loss of $100,000 and Company B has 20 losses of $2,000 each. Company A will probably have a lower emod than Company B. However, cost cannot be completely ignored in the calculation. To achieve this blend of frequency versus cost, emods are 'split rated.'
Split rating divides the actual costs of a claim between two buckets: primary and excess. For each claim, the first $5,000 is primary. Any additional costs are excess. In the formula, the primary value is given more weight than the excess. In the example above, Company A's primary value is $5,000 and Company B's primary value is $40,000.
The expected losses are estimated and also split between the primary value bucket and the excess bucket. The actual losses are divided by the expected losses. The resulting number is the emod.
Medical-only claims do not have as much of an impact on the experience modification. Only 30% of the actual primary and excess portions of an individual medical-only claim is included in the calculation of the modification factor. As a result, medical-only claims are reduced by 70%.
An employer with an emod below 1.00 has had less than expected losses during the experience period. An employer with an emod above 1.00 has had losses that were more than expected compared to other employers in the same industry. I
f the employer has an emod of .85, and a manual premium rate of $43,000 the final premium would be $43,000 x .85= $36,550. But if the employer had an emod of 1.15, the final premium would be $43,000 x 1.15= $49,450--almost a $13,000 difference.
An emod can be a reward for a good safety record or a penalty for a poor one.
To keep your premiums and emod as low as possible, it is essential to create a safe workplace.
For more information on emods, contact your agent or WCF marketing representative, or see NCCI'S website at www.ncci.com.
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Upcoming Safety Seminars
Safety seminars are a great way to polish, refresh or learn new safety skills and preserve your company's bottom line. Most courses are free for WCF policyholders. To access a full list of classes or to register, click here.
JUNE
6/5 8:30 - 10:00 Accident Prevention
6/5 10:15 - 11:45 Risk Management: Identifying & Reducing Risk
6/6 8:30 - 10:00 Controlling Workers Comp Costs
6/6 10:15 - 11:45 Forklift Safety Train-the-Trainer
6/13 8:30 - 10:00 Ergonomics: Industrial Ergonomics
6/13 10:15 - 11:45 Emergency/Disaster Planning & Recovery
AUGUST
8/28 8:30 - 10:00 Safety Resources on the Internet
8/28 10:15 - 11:45 OSHA Required Programs
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