What is meant by controllable mod?

The concept of "controllable mod" refers to the difference between a client's existing experience modification factor (mod) and their ideal mod that would be achieved in the absence of losses. This metric helps businesses understand how their past performance in terms of claims and workplace safety directly influences their insurance premiums.

A lower mod signifies better safety performance, leading to lower premiums, whereas a higher mod indicates a history of claims, resulting in increased costs. By identifying the gap between the existing mod and the ideal mod, businesses can target specific areas for improvement in safety practices and risk management, ultimately managing their insurance costs more effectively.

This understanding is crucial for business owners who want to control their insurance costs and enhance workplace safety, as it provides a clear pathway to achieving a more favorable mod through proactive measures.