{"id":150,"date":"2026-05-07T16:08:57","date_gmt":"2026-05-07T21:08:57","guid":{"rendered":"https:\/\/www.inscyclopedia.com\/?p=150"},"modified":"2026-05-07T16:08:57","modified_gmt":"2026-05-07T21:08:57","slug":"wc-experience-mod-combinability","status":"publish","type":"post","link":"https:\/\/www.inscyclopedia.com\/?p=150","title":{"rendered":"WC Experience Mod Combinability"},"content":{"rendered":"\n

I recently had a question from one of the Agency’s clients asking why all their subsidiaries share a common work comp experience modifier when they are each in different industries. While I sympathize with the client’s desire to have separate experience modifier for each entity, that\u2019s not the way the NCCI rules are written.\u00a0 They look only <\/em>at the issue of ownership \u2013 the thinking behind that is one of management control.\u00a0 (The same is true of non-profits which have no \u201cowners\u201d so they look solely at who controls what.) \u00a0Who gets to make the decisions regarding how a company is run? \u00a0If it is the same person, group or company that controls the various entities, then they are combined for work comp experience rating purposes. It doesn\u2019t matter what industries are involved \u2013 if an ice cream shop and a fireworks manufacturer share common ownership, they are combinable for experience rating purposes.<\/p>\n\n\n\n

I\u2019ve seen several accounts here at Crane over the years where businesses in unrelated industries are combined for the experience mod.  One that pops to mind is an account that has contracting, wholesale and manufacturing operations in several different states.<\/p>\n\n\n\n

However, keep in mind that combinability for experience rating purposes doesn\u2019t mean that all the entities need to be on the same policy.\u00a0 Each entity could have their own policy if desired. While they would continue to share the same experience modifier, you might find an underwriter that is willing to give favorable pricing on the lower-risk\/lower-loss company while the problem child subsidiary gets placed with a completely different company.<\/p>\n\n\n\n

And while I\u2019m sure there have been people who have figured out how to disguise common ownership through clever and complex corporate structuring, that is a lawyer question, not an insurance one since it could also affect tax, estate and other issues. You don’t want to be accused of intentionally deceiving either the NCCI or your insurance carrier as that can bring a whole host of new problems into your life. <\/p>\n","protected":false},"excerpt":{"rendered":"

I recently had a question from one of the Agency’s clients asking why all their subsidiaries share a common work comp experience modifier when they are each in different industries. While I sympathize with the client’s desire to have separate … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[9,5,4],"class_list":["post-150","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-experience-modifier","tag-wc","tag-work-comp-2"],"_links":{"self":[{"href":"https:\/\/www.inscyclopedia.com\/index.php?rest_route=\/wp\/v2\/posts\/150","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.inscyclopedia.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.inscyclopedia.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.inscyclopedia.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.inscyclopedia.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=150"}],"version-history":[{"count":1,"href":"https:\/\/www.inscyclopedia.com\/index.php?rest_route=\/wp\/v2\/posts\/150\/revisions"}],"predecessor-version":[{"id":151,"href":"https:\/\/www.inscyclopedia.com\/index.php?rest_route=\/wp\/v2\/posts\/150\/revisions\/151"}],"wp:attachment":[{"href":"https:\/\/www.inscyclopedia.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=150"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.inscyclopedia.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=150"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.inscyclopedia.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=150"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}