The Importance of a Mod Audit – Case Study 

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A mod audit can make all of the difference when it comes to workers compensation costs. Check out this case study to see how an agent saved their clients money with a mod audit.

Mod Audit


The Company’s work comp costs were increasing after claim activity, and they wanted a second opinion.  The business thought things were good because the mod score was .99 and they were paying $65,000 a year.  It was agreed that a mod audit needed to be performed and the company forwarded the state bureau report and company loss history.

A quick review of the materials determined that the losses reported by the carrier to the bureau were higher than what was on the loss history. 

By using Mod Advisor’s analytic software, it was discovered that the misreported claims were causing the mod value to be 5 points higher.  This was costing the company additional premium of $3,250 annually.  It was also discovered that the company did not have a formal return to work plan and several small losses were inflating the mod by another 4 points.


We were able to get the carrier to correct the loss value and instantly the client saw a premium reduction.

In addition, the company now understands the financial importance of a Return-to-Work program and the user was able to educate the company with Mod Advisor’s Return To Work Resources.

The broker was able to obtain a BOR and now handles the entire account.

Has your company received a mod audit?