The MOD represents a credit or a debit applied to the Workers' Compensation premium. If a claim history and claim payments are higher than the average, the MOD will be higher than the average (1.00) and a company's Worker's Compensation premiums will be higher than the average.
Conversely, if claim payments and claim history are lower than the average, the MOD and premium will be lower than the average.
L.L. Geans is proud of our MOD numbers. For 2015-2016, our number is .78. As you can see, that is well below the industry average of 1.00. Keeping our MOD number better than the industry average is important for several reasons:
- We want a safe work environment for our crews and our customers' employees
- We want our Workers' Compensation premium payments to be as low as possible. Low premiums reduce our overhead and keep our pricing competitive.
- The MOD is a safety benchmark. A number over 1.00 excludes many companies from bidding on projects.