Experience Modification Rate (EMR) and Your Workers’ Compensation

An Experience Modification Rate (EMR) will always affect worker’s comp insurance premium of your company. Insurers use the Experience Mod Rate (EMR) to calculate worker’s compensation premiums because it considers the history of accidents or loss, ie the number of claims that occurred over the last 3 years. The average EMR is 100 or 1.0. Anything lower and your worker’s compensation premium will be below average. An EMR above 1.0 will result in a higher than average premium.

That’s it in a nutshell. The experience modifier adjusts workers compensation insurance premiums based on a comparison of past losses as compared to the average losses of other businesses in that state in the same business, adjusted for size. Another way to think about is actual loss vs expected loss. Any injuries above the expected, or average, and your worker’s comp will go up.

How to Lower your EMR

As is the case with any form of insurance, the more you use, the higher your premium. So, the quick and easy answer is to reduce the number of accidents that result in claims and losses. Our Claims Management process ensures a lower EMR through by implementing a comprehensive process to reduce loss, both in the future and retroactively. When closing claims, the speed is also important.