Answer: The Experience Mod is a fundamental component of the final cost of workers’ compensation insurance. It is a method for adjusting the cost of insurance to the distinctiveness of an individual employer. In other words, it’s a rating tool insurance companies use to adjust or modify your individual company’s premium. An employer with a better than average mod (below 1.0) receives a credit. An employer with worse than average mod (above 1.0) carries a debit rating and will experience higher costs.