Contractors: Is your Experience Mod accurate?
Posted by Debbi Kuhne on Mon, May 10, 2010 @ 11:47 AM
At least 50% of the
NCCI mod worksheets we review for our clients are in error. The most likely error is missing payroll. Not from your standard program but if you are a contractor engaged in OCIP(Owner Controlled Insurance Program) and CCIP(Contractor Controlled Insurance Program) jobs, that's where the errors occur!
A few years ago we had a large contractor that was hovering at a 1.00 mod - and we all know what that can mean! While verifying their mod worksheet we noted that all the payroll and Workers Comp claims under the standard program were included, but realizing a high percentage of work had been done under OCIPs and CCIPs we wondered why that wasn't reflected on the experience modification worksheet. After several months of tracking down the individual at each carrier responsible for filing the data and finally having that data provided, the mod went from 1.00 to .97!
Missing payroll is not the only error that can occur. Incorrect payroll, misclassification of construction workers, or duplication of claims also cause many, many errors. Your experience mod rate is only as good as the data that is entered into the system!
So, if your mod hasn't been verified lately now is the time to do it! Who knows, you may be able to reduce your mod by several points!
Need someone to verify your experience mod? The claims team at Construction Risk Advisors has been successfully recovering misallocated premium and experience mod dollars for Connecticut contractors for a long time!