Experience Modifications have been used for decades as a method to adjust employer’s workers’ compensation premiums based on their own loss experience. Good experience would earn a credit experience modification, an experience modification below 1.00. Loss experience higher than anticipated in the rate results in an experience modification greater than 1.00. This is all old news. So what is new? Three inquires in the last 6 months from our policyholders about their experience modifications. That by itself is not usual. What was unusual is that all three had a significant panic in their call. In each case, the insured’s largest customer was letting them know that future work was being discontinued because their experience modification was above 1.00. (more…)