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Do you believe your company's experience rating is unfairly high based on the number and severity of your claims? You are not alone. Many employers share your concerns and x-mod calculations can sometimes be incorrect.

The experience rating (sometimes called experience modification factor, mod, x-mod or e-mod) and Massachusetts ARAP* can increase the cost of workers' compensation insurance by as much as 50%, or even double the normal premium.

In more than 65% of the cases we have reviewed, the policyholder has been overcharged on audit for either an incorrect x-mod or some other miscalculation.

"Trust but verify." Insurance carriers are not trying to cheat their policyholders. But they will charge the highest available premium and any uncertainties will normally be interpreted in their favor. Carriers will use the x-mod that was issued by the applicable rating bureau. The carrier does not check it for accuracy.

It is a good idea to have an independent, qualified insurance professional review the past few years of calculations for mistakes and overcharges.

*ARAP (all risk adjustment program) is a second modifier used for experience rated policies in Massachusetts that are over 1.00. The normal experience rating is multiplied by the ARAP to arrive at the effective premium modification. For example, if the mod is 1.27 and the ARAP is 1.18, the effective modification is 1.50.

Please click on the Premium Recovery tab above to learn more. If your company has been overcharged by your insurance carrier in the past, we can help you to get your money back.