Hunter Nelson explains how workers' compensation premiums work and why your EMOD score matters. A $100,000 payroll at 5% base rate costs $5,000, but an EMOD of 2 doubles it to $10,000. Four states, including Ohio and North Dakota, require you to buy coverage through the state.
$5,000 per year.
$10,000 per year.
Four (speaker names Ohio and North Dakota as examples).
Is if you were paying $100,000 a year in payroll, they're going to take the 100,000 times the 5%. So it'd be 5,000 times your EMOD, which would be 1. If you're starting off so then you'd be paying $5,000 a year. If your EMOD was 2, it'd be 100,000 times 5%, would be 5,000 times 2. You'd be paying $10,000 a year in work comp. Same deal goes for if you're paying 0.6, if you're paying 3, or if your EMOD is 0.6 or 3, whatever the case is. So your EMOD makes a big difference. So keep your EMOD low. If you don't know how to do that, reach out to us or reach out to an agent or your agent and get your EMOD down because it is literally a massive discount if you're 1.5. It is very simple. It's cut dry, don't turn in claims, run a safer operation. Work is comp. There's a lot of risk management material, okay? That is basically how workers comp works. On the rating side, if you are in four states, the states I believe are Ohio, North Dakota, There are four monopolistic states. You have to get your workers comp insurance through this state. It is only through their state. You cannot get it through an insurance company. Common insurance companies for workers comp on trucking are going to.
