b"Rooting Contractors Workers Com~ensation Workers' Compensation:Insurance and1Making the Puzzle Pieces Fit Profits: Calculating the Mod RateContinued from pre paviousge Your safety program has a direct effect on your company'sment physic in co tion withlittlelow through regarding how almbina folmod rate. The mod rate directly affects the cost of workers'a c medicalques to imple nt strategic action plans omprehensivemephysic achse compensation insurance, yet many peopledon'tunderstandtionnaire completed by aianto create the savings. E of thehow it is calculatl'd.canrtuallynatehiring ofareas is important; h e there is vi elimi theowev r, The averagr expcritmce modification rate is1.00and simplyemployees prone topa directrelationship betweenthe workers commeansthat acompany has averageworkers'compensationclaims.contrac perform e inthese tor'sanclossesfortheiT industry and will payl 00percent of the man In addition to hiring, which is theareas to profit. ual premium that is set by therr state. A higher than averageemployer'sresponsibility,thereSandraMcGlothlin,Secretary/ experience modifier would be any number greater than1.00.may beinsurancea issu Treasurer of Empire Ro Inc., gentes.ofing, Acompany with a1.43experience modifier will pay143per Theseincludefailurestocontrolbas inF Worth,T , edortexascent of their manualpremium.The43percentsurchargetheprem au ,ilure tobelieves the agent is an importaannualiumdit fa nt reflects the higher than average claims the company has expe controltheExperie Modifierpartoftheprocess. T agent, ncehe rienced. The experience modifier can also be lower than1.00.Worksheet, and failure to monitoraccording toMcGlothlin, Mrs.must 1a company has an experience modifier of .73, they will payclaims, which includes the st know the business of thentractor atus,coonly 73percent of their manual premium. This effectivelythe reserves,and the s ionandle to relay that knowledge ubrogat be abgives the company a27percent discount for having lower thanwhenpossible.When agentssellto theunderwriter. Steve Webster, average losses, claims,and injuries. The following differentthepolicytocontractorsth Owner ofCo Roofs ereSunmmercialin experience modifiers withseemstobegreatdiscussionD , T says thatinsurance varying results.allas exas, ga ct bure rding safety and its impa ,t Continu on page 9 l\\1anual Premiun1 ,106ed $63Experience Modifier . 73 Discount/Surcharge $16, 769 discount Modified Premium 5,337 $4it' , 1.00 Expe1 nce i\\{odificr Discount/SuTchargeer ~eithModified Premium 106Your Roof $63, Deck Experts, Serving the Midwest for Over 30 Years Experience Modifier 43 1.Discount/Surcharge ,706SurchargeWe Sell Metal Deck $26l\\1odified Premium ,812Roof DeckForm DeckComposite Deck $88Allfinishes, and in a wide variety of sizes gauges, As these results show, the experience modifier has a signif available for immediate pick up or delivery icant impact onwhata company actually paysforinsurance.We Also Stock. The diffnence between the low-experience modi.fit'I and theTectumBulb Tee'sGypsum high-experiencemodifierinthisexampleismorcthan $43,000!Call Western Fireproofing Company The experience modification rate is recalculated each yearfor the Best Service in the Business. using acombinedclaimshistory fromatmee-year rollingContact: Mark Van Doren, Material Sales period. Each year, the rolling period dropsoffthe oldest pol Western Fireproofing Company816/561-7667 icy yearnt policy year. If and adds the~ most rece a company has unusually high claims during one policy year, therr rate will be affectedforthree years. There is a one-year lag before a yearKansas City Office: 1501 Westport Road is included inthe experience modification calculation. TheKansas City, MO 64111816/561-7667Fax: 816/561-191 l one-year lag is necessary because theentire cost on claims resulting from serious injuries may not be fully realized for aOklahoma City Office: 5601 NW 72nd, Suite I 78F year.Oklahoma City, OK 73132405/720-9313800/659-6577 7"