(a.k.a. Why Safety Pays… and Accidents Cost Way More Than You Think)

Here’s something the insurance companies don’t always spell out in plain English:
Every business — whether it’s a coffee shop, a fast food place, or a full-service restaurant — has a benchmark.

That benchmark says:
“Here’s the average number of claims a business like yours typically files.”

That benchmark turns into a number called the Experience Modification Rate, or XMOD.
Think of your XMOD like a report card for how safe your business is.

How XMOD Works

• Safer than average:
  If your business has fewer claims than others in your industry, your XMOD drops below 1.00.
  → You get a discount on your workers' comp premiums.

• Riskier than average:
  If your business has more claims than others in your industry, your XMOD goes above 1.00.
  → You pay a penalty in the form of higher premiums.

A Real-World Example

Let’s say the average restaurant your size has 4 claims a year.

• If you only have 1 or 2? You’re safer than average — and your insurance company rewards you.

• If you have 5, 6, or 7? You’re flagged as high-risk — and they charge you accordingly.

Here’s the Costly Catch

Even one bad year — a couple of slips, a hot-oil burn, a cut requiring stitches, or a shoulder injury — can raise your XMOD and cost you thousands more every single year.

Why? Because claims don’t just disappear.
Most stay on your workers’ comp record for five years.
That means a single injury today can drive up your premiums for the next five renewal cycles — costing you over and over again until it finally drops off your report.

A serious injury (like a shoulder or back claim that runs into the tens of thousands) can become the gift that keeps on draining.

The Good News: You Can Reverse It

The reverse is also true:

• Documented safety training

• Fewer claims

= Lower XMOD = Major savings

That’s why REST (Restaurant Employee Safety Training) isn’t just “a nice-to-have.”
It’s a cost-saving strategy with long-term financial impact — and one that starts paying off the moment you put it into action.

Bottom Line

A safer workplace doesn’t just protect your people — it protects your profits.
And the best time to start lowering your XMOD is before that next claim happens.