Insights from Our Recent Risk Management Webinar
To effectively navigate the ever-evolving landscape of workers’ compensation in New York State, it’s crucial to understand the changes to the state’s Experience Modification Factor (MOD). In our recent Risk Management 101 webinar, Megan Coville, Director of OneGroup’s Risk Management Department, provided a comprehensive overview of these changes and their impact.
What is an Experience MOD?
The MOD is a critical metric that measures safety performance and claims management. Essentially, a MOD is a “safety score” that compares expected loss rates to actual losses over a three-year period. This calculation can significantly impact workers’ compensation premiums, with higher MODs leading to higher costs.
Key Changes
One of the recent key changes was New York’s departure from the National Council for Compensation Insurance (NCCI) in 2022. The state has now developed its own equation for calculating the MOD, focusing on New York-specific class codes and experience loss rates. This shift aims to better reflect the unique risks and challenges faced by businesses operating within the state. Understanding the split point, a variable factor that determines how claims are weighted in the MOD calculation, is also crucial.
Effectively Manage Your MOD
Prevention and proactive risk management strategies are essential to control the experience MOD. This includes knowing industry-specific exposures, reviewing data, and implementing measures to mitigate risks like slip and falls, ergonomic issues, and overexertion. Timely reporting and documentation of claims, as well as effective return-to-work programs, can also help maintain a low MOD and avoid premium increases.
Ultimately, it’s important to regularly review your workers’ compensation claims and MOD status. By understanding and adapting to these changes, you can better manage your workers’ compensation costs and maintain a safer workplace.
For more information or to discuss how these changes impact your business, please reach out to OneGroup. Our specialists are here to help you navigate the complexities of New York’s workers’ compensation system and ensure you’re making informed decisions. Contact us today to learn more!
This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.
Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.