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Debit Modifier

A Workers Compensation Term Defined, Described and Explained

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Debit Modifier

This is a term used in the insurance industry that indicates an upward trending experience modification factor. An upward trend in your experience mod factor will indicate a likewise higher than average trend in your workers compensation losses.


This work comp term can mean a great deal to any employer who suffers from a debit modifier. The upward trend in an employers experience mod factor will lead to an increased cost of workers compensation insurance. Many factors go into the calculation of an employers workers comp premium all adding to the cost of the down payment or premium deposit they have to make to begin a workers compensation policy. Ultimately all these factors will determine the final cost an employer pays for his insurance coverage. The process of trending an experience mod factor is vital in helping an employer predict and allow for budgeting of the premium they pay for a workers comp policy. Projecting premium is important while even though not a firm science, it will help any employer with a snapshot of the next few years and what to expect from his insurance cost.

A debit modifier is a true indication that there are or at least have been problems with an employers workers comp losses. This upward trending will lead to more expense for a business in the future and is an indicator that more attention needs to be paid to the loss control in place. It is a trigger that claims need to be reviewed and perhaps help in developing a future plan for lowering the emod by gaining better control over workers comp claims. Simply it is a wakeup call...one that needs to be answered by the employer!




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