Somerset School District is a member of the Wisconsin Educators Risk Management Cooperative (WERMC). Carriers calculate Property and Liability premiums based on actuarial formulas that predict loss based on location and exposure to specific risks.  Historical claims made by the school district also play a role.

Workers Compensation Insurance Factors

Workers Compensation premiums are calculated based on risk percentages applied to various categories of employee within the school district, based on overall wages paid to the particular employee category.  The risk percentages are determined by the insurance carrier, in conjunction with the State of Wisconsin.  Once the Workers Compensation premium is calculated for the new year, the district experience modification factor is applied to the calculated premium to create the final premium for the year.

What is an Experience Mod and how does our Mod affect our premiums?

The Somerset School District Experience Mod represents either a credit or debit that is applied to the district workers compensation calculated premium. A Mod of 1.0 is considered to be the industry average, and is calculated based on a three year average workers’ comp claims. A Mod factor more than 1.0 is a Debit Mod, which means that district losses are worse than expected and a surcharge will be added to the current calculated premium. An Experience Mod under 1.0 is a Credit Mod, which means losses are better than expected, resulting in a premium discount.

Here’s an example of how this works:

As you can see, an Experience Mod of 1.25 would mean that insurance premiums could be as high as 25% more than a school district with an Experience Mod of 1.0.

Somerset School District manages employee injury risk through numerous methods, including: employee education, training, custodial procedures, preventative maintenance, risk auditing, and a strong Return to Work Program.