Area Workers’ Comp Agency Asks Employers: How Low Can You Go?

It's a question surprisingly few employers are able to answer: How low can you get your workers’ compensation modification score to go?

In today's tough economic conditions, Baltimore insurance agent Tom Carroll of Diversified Insurance Industries says too few employers understand that their workers’ compensation modification factor – a number that directly affects premium costs – has a "perfect score" they should working to reach.

The modification factor, calculated using a company's payroll and loss experience, is used to weight the premiums a company pays for workers’ compensation insurance. An average modification factor is 1.0, but according to Carroll, “What's really important is for a company to know its minimum mod.”

The minimum modification factor varies based on a company's industry and payroll, but any company eventually can eventually reach its minimum modification factor by adopting excellent practices in loss control and prevention.

Carroll suggests companies identify their minimum modification factor and analyze them to gain insight into loss trends. He helps his clients understand how issues such as diligent hiring practices will decrease claim frequency, how an injury management coordinator will improve outcomes of injuries that occur and how to prepare for a premium audit.

Diversified, where Carroll works, provides these services through WorkCompEdge, a web-based service dedicated to helping employers reduce workers comp costs and improve productivity.

Diversified "goes the extra mile to provide clients with resources and value beyond standard workers’ compensation insurance policies," said WorkCompEdge CEO Tim Coomer.

For further information, contact Carroll at 410-319-0600 or [email protected] Employers also can read the award-winning blog at

TAGS: Archive
Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.