To value a subject business’ workers compensation experience, “You need an actuary,” says Chris Burand (Burand & Associates, LLP, Pueblo, CO), in response to our query in last week’s BVWire.™ “There are many firms that specialize in assessing the impact of workers comp claims. One that has a good reputation is Al Rhodes at SIGMA Actuarial Consulting Group, Inc. (email@example.com).” Another possibility is a firm that “specializes in assessing the mods relative to claims experience,” such as WorkComp Professionals (workcompprofessionals.com).
For those new to the insurance lingo, “mod” stands for Experience Modification Rating. “Workers comp rates have a set standard relative to the job classifications,” Burand explains, “but they can be modified based on claims experience resulting in either higher or lower than standard rates. This is something requiring significant expertise,” if an appraiser is to consider workers comp claims in their appraisals.
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