Understanding Your Workers' Compensation Experience Modification Factor—Your Practices Safety Benchmark

摘要

What is Experience Rating?Experience rating is a method for adjusting the cost of workers' compensation insurance to reflectthe safety record and risks ot established businesses compared to state-industry benchmarks. In simple terms, experiencerating compares three prior policy-years of the employer's experience (not including the most recentprior policy year] witn the experience that is expected for employers engaged in the same business, in this case veterinary care. For example, if claimexperience for the term is better than what isexpected, the practice earns a credit experience modification, which decreases the cost of workers compensation premiums.Conversely, if claim experience is worse than expected, the practice earns a debit experience modification. This increases the workers compensation premiums.