If you’ve followed our online articles at all, you already know how serious we are about safety. The record low Mod score we just received shows how strong our safety record is.
We conduct electrical safety training, not just for our employees, but for clients and others in the business community who want to avoid arc flash incidents and other electrical hazards.
While we’ve always known that having a strong focus on safety makes business sense, the results of our most recent NCCI (National Council on Compensation Insurance) report gave us yet more tangible proof that working safe leads to greater profit.
What is a low Mod score and why does it matter?
A Mod score, or EMR (Experience Modification Rate), is an industry term used to describe an employer’s workers compensation experience factor. A Mod score compares actual workers compensation claims to what’s expected from similar-sized employers in the same, particular industry.
Miller Electric’s losses, or workers compensation claims, were compared to expected losses in the commercial electrical contractor industry. A score of 1.0 means you are exactly where they calculate our industry to be. A score of less than 1.0 means you’re better than they expected you to be. A score of higher than 1.0 means you’re worse.
A Mod score is like a golf score. The lower your total, the better you played.
But unlike a round of golf with friends, a Mod score has real world consequences. The higher your Mod score, the more you pay for workers compensation premiums. If your premiums soar high enough, it could prevent a commercial electrical contractor from bidding on certain jobs.
Miller’s 0.56 Mod Score is the Lowest in Our History
When Miller Electric President Ray Bruegman saw our most recent Mod score of 0.56 he said, “ A 0.56 mod is the lowest in my tenure here. I always thought a 0.69 was out of reach and anything in the 50’s was a fantasy.”
Well, dreams really do come true at Miller Electric because our Mod score means we’ll now pay nearly 40 percent less for our workers compensation insurance than a commercial electrical contractor with a Mod score of 1.0.
This Mod score table shows it better than words can describe. In this example, if a company’s workers compensation insurance premium costs were $100,000, how would our new Mod rate affect discounts?
|Premium||Experience Mod||Modified Premium|
The company would be paying $44,000 less for workers compensation insurance.
What makes a low Mod score?
The best way to achieve a low Mod score is with an intentional, ongoing commitment to and culture that supports safety. The score is actually influenced more strongly by small, frequent losses than big, rare ones.
The fewer workers compensation claims you have, the better.
Being proactive about injury prevention and implementing a sound safety program are two of the best ways to keep electricians and technicians safe. When Miller Electric employees work safely, there are fewer incidents that can lead to injuries and fewer injuries means lower workers compensation claims, which gives us greater opportunity to secure more work.
We couldn’t be happier with our most recent score because it means our employees are working safely. It’s nice to save money, but at the end of the day, the more injury-free days we can have, the better.