Insurance can make or break your business. Taking out an adequate plan that covers your needs is great, but paying too much can lead to a loss of capital. Thankfully, you can easily see better results from your insurance by learning more about your options. Your experience modification factor, or x-mod, can help you find better rates when it comes to areas like Workers’ Compensation. Before you can take advantage of this, you need to learn a few basic points about how it all works.

What Is an X-Mod and How Does It Work?

To understand what is an insurance x mod factor, you need to understand how it is determined. Essentially, the Workers’ Compensation Insurance Rating Bureau of California will compare the annual losses of your business with the average rate within the industry. By using the last three years of your insurance history as a guide, the WCIRBC will assign your business a rating that dictates your overall insurance rates. Unfortunately, some businesses will have high x-mod factors, which can make costs difficult to manage. By working with the right insurance agency, you can:

  • Lower your x-mod rate
  • Determine accuracy of information reported to WCIRBC
  • Thoroughly review history of claims

Use Your X-Mod To Your Advantage

Taking control of your x-mod factor allows you to get more out of your insurance plan. Reach out to experts in the insurance industry to learn more about how you can start managing your x-mod in a more mindful way.