Craig E. Hanlon, CPCU, CWCA

 "The Comp Guy™"

Certified WorkComp Advisor, Nationally Recognized Work Comp Specialist, Author, Speaker & Consultant
License # 9581527 


NJ WorkCompSolutions™  888.550.6116 ext. 1


We Drive Work Comp Costs Down.

We believe that most businesses manage risk and purchase insurance in a way that is detrimental to their business.

Does this scenario sound familiar?

When it’s time to renew your company’s workers compensation policy, you may approach your purchasing decision just like you would buy any other type of business insurance.

If you’re happy with your current policy, you may not do any shopping at all. You may simply call your agent  and see what the bill will be for the coming year.

But if your workers comp insurance bill is giving you any pain in your pocketbook, then maybe you wonder if you could save a little money by switching insurance agents or providers. Maybe you make a few calls and see who comes back with the lowest bid. Because shopping for workers comp insurance is like shopping for any other insurance, right?


It’s not about the low bid.

In most states, companies go through a process called experience rating. Experience rating is a mathematical analysis of a company’s payroll and losses which results in a number called the experience modification factor, also known as "the mod" or “ex-mod.”

The higher your mod, the more premiums you pay:

The lower your mod, the less premiums you pay:

Many employers realize that the mod affects their premiums in some way. But many don't realize what they can do to lower their mod and their insurance costs!


  • Your Experience Mod must be managed to remain competitive and to capture more business opportunities.
  • Benchmarking your workers compensation outcomes i.e. #injuries, #lost work days, experience mod etc. will allow your organization to get a clearer picture on what's working in your work comp loss control program and what's not.  
  • Be aware of how your experience mod is calculated and take active steps to reduce it.
  • Create and execute an injury management program to reduce the number of injuries and effectively manage injuries that occur.




Getting A Quote & Your Experience Modification Factor

There is an Experience Modification Factor analysis that employers need to know about, it will tell you what your lowest possible or minimum Experience Modification Factor can be.  When you see what your minimum Experience Modification Factor is compared to your current Experience Modification Factor, your focus will shift even more to what your potential savings can be. 

The difference between costs generated by the current Experience Modification Factor and your best possible Experience Modification Factor is a controllable cost.  Approaching or obtaining the lowest possible Experience Modification Factor factor is a solid business objective.

When this controllable cost is exposed, it becomes apparent that “getting quotes” on Workers Compensation Insurance has little to do with reducing costs.  Going out to bid limits your cost reduction method to what the insurance marketplace and pricing cycle offer.  A reduction in the “rate” from one year to the next may have minimal or no impact on your total “cost”.  For example, the rate may decline by 15%, but the costs increase by 30% because of rising Experience Modification Factor.  

In order to reduce costs, employers must move beyond the bidding process and the basic commodity mind set of placing insurance.  They need and should demand assistance with the implementation of practical and proven methods for reducing the Experience Modification Factor factors.


At NJ WorkComp Solutions, it all begins with the Dapper Process, our propriety risk management tool. DAPPER is an acronym for Dialogue, Agreement, Prioritize, Presentation, Execution and Recognition.

Our process will utilize a 13 point checklist to determine the risks, threats and dangers your company faces. It will develop a clear and effective long-term plan to reduce your overall workers compensation costs, increase productivity and improve your bottom line. Our implementation plan will have clearly defined timelines with regular reviews to ensure we are meeting our goals and objectives.


We will engage in a dialogue with your CEO, CFO, HR Director and other key personnel to assist them with the self-discovery of the company’s unique risks, threats and dangers it faces when dealing with workers compensation.

We will also assist them with understanding the consequences of not taking action. These risks, threats and dangers are translated into lost revenue in order to bring home the importance of taking action.


We both agree that the risks, threats and dangers are too high not to address or the process stops and the meeting ends.


The Employer participates in the setting of priorities.


We both affirm all prior agreements and determine how to move forward in a business relationship.


Implement mutually agreed upon priorities with accountability and timelines.


Revisit what is working, not working and make necessary adjustments.

When Can We Expect to See Results?

If we find a mistake or overcharge results can be immediate.  Unlike many other brokers who will take a percentage, any money we find in your favor will go back to you 100%.

Typically, long term reduction of your experience modification factor takes time and patience. Implementing our tools and strategies will yield significant savings.

Call Toll Free:
(888)-550-6116 ext. 1
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