It is a fact that many employers actually overpay for their workers’ compensation
premiums. Workers” Compensation Coverage
provides medical, disability or death benefits to any cast or crew member who
becomes injured in the course of their employment. Coverage usually applies on
a 24 hour per day basis whenever employees are on location away from their
homes. Individuals who call themselves "Independent Contractors" will
usually be held to be employees as far as Workers' Compensation
is concerned, and failure to carry this insurance can result in having to pay
any benefits required under the law plus penalty awards.
The experience mod is a factor unique to each employer. In
simple terms, this formula is designed to compare a specific employer’s
historical claim and payroll data, to other employers with similar business
operations. An individual employer’s experience mod is calculated using claims
data compared to premiums from the three most recently completed years,
excluding the expiring term.
Key points to
consider
- If your losses are increasing, your mod most likely will go up even if your payroll goes down.
- The frequency of losses hurt you more than the severity of losses.
- It is important to check the calculations on the experience modification worksheet each year.
- The most common errors are incorrect or incomplete payroll data.
- Your workers’ compensation mod is the single most important factor insurers use to identify your risk.
- Your mod can be reduced through effective safety and loss control programs.
How to reduce your mod?
- Develop a safety program.
- Reward safety in the workplace.
- Start a return to work program.
- Investigate every accident and make corrective actions if needed.
- If you suspect fraud, immediately inform the insurance company.
- A disciplinary program also should be incorporated into the safety program; it should hold employees accountable for breaking the rules.
The staff at John Hart Insurance has over 60
years combined experience in the field of entertainment insurance. We
focus exclusively on understanding the unique needs of motion picture,
television, video, music and theatrical companies. This knowledge base
allows us to structure an insurance program specifically for each client that
will be a balance of the best coverage and most economical solutions to
help them manage the risks inherent to their unique businesses.
