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How Your X-Mod Impacts Your Brewery's Workers Comp Insurance

Workers’ compensation exists to protect workers. Most states require companies to cover employees with workers’ comp. In California, for instance, even a business with only one employee must carry workers’ comp.

Workers' compensation insurance can also be a big expenditure for your brewery. That's where your experience modification, or X-mod, comes into play.

What is an X-Mod?

Your X-mod compares a company's compensation claims experience to other businesses in of similar size in the same industry. It helps tailor the cost of workers’ comp to the characteristics of specific businesses. More importantly, it gives a business the opportunity to manage its own costs.

What is the X-Mod Formula?

The actual process of calculating the experience mod is complex. Here’s what you need to know: your brewery’s actual losses are compared to its expected losses by industry type. Factors include company size, unexpected large losses, and the difference between loss frequency and loss severity.

What’s the Impact of the X-Mod?

Your X-mod represents either a credit or debit to your workers’ compensation premium. A mod of 1.0 is the industry average. A factor greater than 1.0 means you have greater losses than expected; your premium will go up. On the other hand, an factor lower than 1.0 means you have lower losses than expected, resulting in a premium discount.

How to Improve Your X-Mod

Beall Insurance is proud to work with many breweries to help them lower their X-mods. (In other words, these breweries enjoy powerful savings on their workers’ comp premiums.) Here’s some tips to help you get started improving your X-mod:

  • Work closely with your brewery insurance agent. An experienced brewery insurance professional can help you lower your workers’ comp payments by improving safety. Additionally, your agent can also ensure you pay the right rate to begin with. It’s possible that, due to incomplete or incorrect information, your workers’ comp premiums were not calculated correctly.
  • Create a robust safety program. Perhaps more importantly, think of ways to proactively prevent worker prevention.
  • Create or improve an effective return-to-work program.
  • Report injuries promptly. Studies show that prompt injury reporting reduces the cost of claims.

For more than 25 years, Beall Financial and Insurance Services, Inc., has been helping corporations and individuals protect their most important assets. The agency’s client base covers a spectrum of businesses that require specialized insurance packages and knowledge. With offices in California and Indiana, Beall Financial and Insurance Services serves clients nationwide.