What Is An Experience Mod?

An experience modification factor is a means to recognize the differences in loss history between your business and average businesses in your classification code.

For example, if your loss experience has been better than the average business in your classification code, then your policy should have an experience mod below 1.00; your premium will decrease. If your loss experience is worse than the average business, then you will have an experience mod above 1.00; your premiums will increase.

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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