Merit rating, or
modification rating, allows a workers compensation insurer
to distinguish among insureds in the particular job
classification according to variances from expected losses.
These variations result from past loss experience, size of
exposure and quality of the exposure. Mathematical formulae
are then applied to derive your Experience Risk Modifier
(ERM). As one of the primary factors affecting the cost of
your workers compensation insurance mistakes or inflation in
this factor can cost you.
At Johnson & Bryan Construction Services we have the
expertise to audit and monitor your ERM. We can also advise
you how best to manage this factor downward over time
through such techniques as:
- Assuming a deductible to absorb
small losses.
- Application of various loss control
and managed care techniques.
- Implementation of a Drug Free
workplace program.
- Implementing incentivized safety
programs to reduce frequency of small claims.
- Proper assignment of your payroll
to the appropriate class code.
Let us show you how our insureds have benefited from such
techniques. |
