What does the Interstate Mod apply to?

The Interstate Mod is applicable specifically to employers that have exposures in multiple states. This is important because the Interstate Mod is a component of the experience rating system used in workers' compensation insurance. It allows the consideration of all the employers' payroll and loss experience across different states in which they operate.

By taking into account the experience from multiple states, the Interstate Mod helps ensure that employers are properly rated based on their overall risk profile rather than restricting it to just one jurisdiction. This is particularly valuable for businesses that might be operating in various states, as it provides a more accurate reflection of their workers' compensation risk and potential costs.

This aspect helps ensure that employers are not penalized or unfairly evaluated based on isolated incidents or experience from a single state. Therefore, this multifaceted evaluation is critical for accurately determining premium rates and ensuring equitable treatment of employers with similar risk profiles, even if they span different states.