What is the experience modifier for a clothing store with a payroll of $17,250 if the workers' compensation premium is $391.64?

To determine the experience modifier, one would typically need to consider the relationship between the workers' compensation premium and the payroll of the business. In workers' compensation, the experience modification factor (often referred to as the experience modifier) is used to adjust the premium based on the company's previous claim history compared to industry standards.

In this scenario, the clothing store has a payroll of $17,250 and a workers' compensation premium of $391.64. To find the experience modifier, you would usually apply a formula that considers the expected losses given the payroll and compares them to the actual losses experienced by the business.

If the store's modifier is calculated to be 0.88, this indicates that the business has a lower frequency or severity of claims compared to average businesses in the same classification. A modifier of 0.88 suggests that this store is performing better in terms of employee safety and risk management than what is typical for its industry.

This outcome can occur when a business has been claim-free for a certain period or has fewer claims and/or less severe incidents than those reflected in the industry average, leading to a reduction in their insurance premium based upon a lower perceived risk of future claims.

Consequently, the experience modifier of 0.88 demonstrates