For customers who need claim information related to damage from Hurricane Harvey
CLICK HERE for Commercial and Personal Claims Contact Info.


Cravens Warren

Serving the risk management and commercial insurance needs of business. Cravens Warren, founded in 1946, has been serving the insurance needs of... read more

Contact Info
  • 10011 West Gulf Bank
    Houston, TX 77040
  • Phone (713) 690-6000
    Fax (713) 690-6020
  • contact us
Client Account & Resources
Your Bill
My Documents
Risk Portal
Join Our List
Client Area
Oil & Gas Insurance

Why did my Workers Comp Experience Modifier go up when I had no claims last year?

For Oil & Gas insurance clients, the Experience Modifier is one of the most important factors in determining the cost of their Workers' Compensation premiums. There are two key points in understanding how the experience modifier is calculated.

Firstly, it is important to remember that this immediate past year’s losses are not included in the calculation of a company's experience modifier. Only the 3 years prior to the past year.

Secondly, The Texas Workers’ Compensation system has been working so well, with the reforms implemented over the past 20 years, that Workers’ Compensation rates in Texas have been reduced several times.  Now rates are so low that the Experience Modifier mathematical formula must “expect” less in losses.  This expectation of fewer losses makes earning a good E-Mod more difficult.  So, even with no new losses, the formula that now contemplates fewer loss dollars and so gives more weight to the past losses that were included in prior years. 

What is the take-away?  Make sure that you have access to the expertise and resources to manage your risk and help you get the lowest rates possible. Contact one of our Oil & Gas insurance specialists today.