Work Comp Exp Mod

Wayne 1.jpgWork Comp Exp Mod is insider lingo for workers compensation insurance experience modification factor. The City purchases its workers compensation insurance coverage from the League of Minnesota Cities Insurance Trust (LMCIT). Each year the LMCIT applies an experience modification rating to our insurance premium up or down, depending on the City’s actual claims experience.

An experience modification of 1.0 means that we are experiencing losses at the expected rate. A rating above means that our losses are higher than average. Our experience modification rating for 2010-2011 is 0.79. This experience modification rating reduces our workers compensation insurance premium from $643,486 to $508,354: an annual savings of in plan year 2010-2011 of $135,132.

Keeping a work comp exp mid below 1.0 doesn’t just happen by chance. It’s not luck. It’s the result of a strong safety awareness program by the organization and a strong commitment to working safely by employees. We’re fortunate here that we’ve got both of those factoring working in our favor.

Our employees know safety and work safely. On the management side, we’ve got Risk Manager Wayne Estenson. He has a strong safety orientation. He knows everything there is to know about workplace safety, and how to navigate the work comp insurance system. We’re fortunate to have Wayne on our team. His work saves our taxpayers money and our employees from unnecessary pain and suffering.

Thanks Wayne!

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