Understanding how Workers Compensation Premium Calculated

1
Understanding how Workers Compensation Premium
Calculated

• http//www.workerscompensation-california.com/work
  ers-comp-resources/workers-compensation-premiums/

2
Understanding how Workers Compensation Premium
Calculated

• At present workers compensation has become
  mandatory for business. Whether you owned a small
  business or a large size company but one of the
  common cost of doing business is by is insuring
  your workers against injury on the job.
  Approximately every business in the U.S workers
  compensation insurance policy is mandatory for
  all employees.

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Understanding how Workers Compensation Premium
Calculated

• Workers compensation premiums are calculated
  basing on how the employees are classified
  regarding their work category and work
  performance and the rate is assigned to each
  employee classification. The workers compensation
  premium rate itself is expressed as dollars of
  payroll for every class code. In most of the
  states, the NCCI determines the classification
  rate and experience modification factor.

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Understanding how Workers Compensation Premium
Calculated

• The experience modifier is also plays an
  important part for premium calculation. In
  general it is referred to as your MOD. This is a
  numeric demonstration of your businesss failure
  and claims the past. It can be calculated
  differently by states. Your business will have
  little control over the broad industry it is in
  and little effect on the rate assigned by the
  state. But, your business can dramatically affect
  premiums by lowering its MOD

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Understanding how Workers Compensation Premium
Calculated

• Basically the key factor in calculating a
  workers compensation premium is the experience
  modification factor, which is also known as mod.
  It is significant to understand and monitor your
  experience modification rating. Its important
  to understand and monitor your experience
  modification rating since it has a direct
  association to how much you pay in Workers
  Compensation Premiums.

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Understanding how Workers Compensation Premium
Calculated

• . The lesser your Experience Mod, the a lesser
  amount you pay in premiums. But before you are
  able to use your modification factor to control
  the costs you must first understand how it works.
  This is the process for tailoring the cost of
  insurance to the characteristics of an exact
  business, but it can also gives business the
  chance to administer its own expenses through
  quantifiable cost saving programs.

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Understanding how Workers Compensation
Premium Calculated

• There are many ways to lower your workers'
  compensation premiums. As an independent
  insurance agent, help you reduce claims and
  control the costs by assisting you in
  establishing a written safety plan, implementing
  a return to work program, reorganizing and
  reporting procedures and identifying top loss
  sources. Pegasus Financial Group in provides
  their employees the best premium rates in
  California