How Indiana Contractors Can Lower Their Workers’ Comp Mod (and What a Return-to-Work Plan Actually Looks Like)
- Mike Lewis
- Apr 30
- 2 min read
President, Archbold and Lewis Insurance Inc.
April 30, 2025
If you run a plumbing, electrical, or HVAC business in Indiana, your team faces physical risk every day. Unfortunately, those risks don’t just affect safety—they can quietly eat into your profit through your workers’ compensation Experience Modification Rate (EMR or “mod”).
A mod of 1.0 is average. Anything above that, and you’re paying more than your competitors for workers’ comp insurance—sometimes thousands more per year. And for many contractors, this premium creep happens silently, claim by claim.
So, what drives your mod up—and more importantly, what can you do to bring it back down?
Why Is Your Mod Over 1.0?
Your mod is calculated based on your actual claim history versus similar businesses in your industry. Here are common causes of higher mods in the trades:
🔹 Frequent Minor Injuries – Repetitive strain, cuts, and trips can add up fast.
🔹 High-Cost Claims – A major injury on a ladder or electrical shock can impact your mod for 3+ years.
🔹 No Return-to-Work (RTW) Plan – The longer a worker stays home, the more expensive the claim becomes.
🔹 Misclassified Employees – If your techs wear many hats, improper job classifications could be inflating your risk score.
4 Ways to Lower Your Mod
1️⃣ Create a Safety-First Culture
Use weekly toolbox talks, PPE enforcement, and jobsite walk-throughs. Track near-misses and educate constantly.
2️⃣ Audit Class Codes & Subcontractors
Ensure all employees are correctly classified and payroll is reported accurately. Don’t forget: uninsured subs = increased exposure for you.
3️⃣ Report Claims Promptly
Early reporting leads to better outcomes. Waiting even a few days can increase claim severity.
4️⃣ Build a Return-to-Work (RTW) Program
You can create light-duty work—even in the trades. And it can drastically reduce claim costs.
What a Return-to-Work Plan Looks Like in the Trades
Think “we don’t have desk jobs”? You’re not alone—but that doesn’t mean you can’t get creative.
Example: HVAC Tech With a Back Strain
Week 1: Organize tools, answer phones, or prep job folders.
Week 2: Inventory equipment, monitor shop safety, assist with training.
Week 3: Ride-along support or visual inspections (if cleared by doctor).
Example: Electrician With a Wrist Injury
Update safety logs or SOPs.
Help inspect vans for tool readiness.
Support dispatch with job routing or scheduling.
✅ Tip: Prepare a list of light-duty options in advance, with HR and your insurance agent.
✅ Tip: Clarify that it’s temporary and reviewed weekly with a goal of returning to full duty.
Even just 3 hours a day of modified work can lower a claim's cost by thousands and reduce the impact on your mod.
The Payoff
A lower mod can:
Cut your insurance premiums
Improve your standing when bidding on commercial jobs
Keep your team connected and productive during recovery
Need Help?
At Archbold & Lewis Insurance, we specialize in helping Indiana trade contractors reduce their mod and take control of their workers’ comp costs. We’ll review your current mod, identify cost drivers, and help you build a realistic safety and RTW strategy.
📩 Let’s talk. Send me a message or visit archboldandlewis.com to schedule your free workers’ comp audit.
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