Another question from one of our readers - My company has had a great Workers Comp safety record over the past eight years. We had one serious injury two years ago. I know that it will start to hit my E-Mod this year. The Total Incurred of the claim is $75,890. Other than a few medical benefits only claims, this is the only claim we have had for many years. Is this one claim going to wreck my E-Mod and Workers Comp premiums?

Actually, this one claim is going to negatively affect your E-mod, but it is not going to wreck it. The way that Workers Comp E-Mods are calculated diminishes the effect of one bad claim.

Your claim of $75,890 is split into two figures:

1. The first $5,000 is called a Primary Loss. This part of the claim is charged against your E-Mod and premiums at full cost, so to speak.
2. The other $70,890 is reduced by some factor like 80%. This part is called an Excess Loss.

As you are a medium sized business, you will have a claim here or there that may be more than minor. The Workers Comp E-Mod system shelters employers from the full brunt of one bad claim.

Next Up - The Other Side of the Coin - many small Workers Comp claims, but no major ones.

Two Days from Now - Warning - There is no such thing as a small Workers Comp claim.