Understanding X Mod Insurance

When employees are injured at their workplace, business owners must pay Workers’ Compensation or risk being sued. The payments that business owners make qualify as X Mod insurance.

How To Interpret the X Mod Factor

X Mod is a shortened form of experience modification and refers to how the comparative safety of a workplace affects its premiums. According to www.arroyoins.com, companies receive the X Mod factor as a percentage from a state organization. A score of 100% means that a company is as safe as the average company in the state. If the percentage is higher, it is less safe, and if the percentage is lower, it is safer. Businesses should pay careful attention to their X Mod factor since this number, and the cost of payroll, determine how high Workers’ Compensation payments will be.

How To Lower the X Mod Factor

Most businesses want to lower their X Mod factors so that they have to pay less in Workers’ Compensation premiums. The following strategies can result in decreased X Mod factors:

  • Increased availability of safety goggles and other forms of personal protective equipment
  • Implementation of signs warning about safety hazards
  • Working hour limits to prevent fatigue

Not only will taking these measures help to lower a business’ X-Mod factor, but it will also decrease accidents and the need to make insurance payments.

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