The exclusion generally applies if the officer has at least 25 percent equity ownership in the corporation. Please reference the Texas Workers' Compensation Manual and Texas Labor Code for more details. The revised law also says that sole proprietors and partners are entitled to benefits if their business has workers' compensation coverage. Premiums may be collected for sole proprietors and partners unless they are excluded from coverage. Experience modifiers Experience modifiers are designed to give businesses a financial incentive for maintaining safer workplaces.
Modifiers predict an employer's future losses by looking at their past loss experience.
E-mods, as they are sometimes called, are a standard industry calculation used by all carriers to adjust a premium. Employers with better than average losses are rewarded and employers with worse than average losses are penalized. Experience modifiers are calculated by the National Council on Compensation Insurance. The calculation is based on payroll and claim information for the three past policy years, not including the most recent past policy period. A credit modifier is expressed as a number less than 1.0 and a debit modifier is greater than 1.0.