An experience modification rate (EMR) is a multiplier insurance companies use to help set workers’ compensation premiums. Your business’s rate is determined by looking at your workers’ comp claims history and potential for future injuries. Businesses with lower EMRs pay less for their workers’ compensation insurance.
It has a significant impact on the worker’s compensation insurance premium of a business. You can verify that the EMR, EMOD or XMOD used on your policy is accurate through an Experience Modification Rate Review.
The Experience Modification Rate, is a numeric representation of a business’s claims history and safety record as compared to other businesses in the same industry within the same state.
Your EMR basically states one of three things:
Want to know how Experience Modification Rates are calculated? The base premium is calculated by dividing a company’s payroll in a given job classification by 100, and then by a ‘class rate’ determined by agency that promulgates the Experience Modification Factor.
You might be paying too much premium. Since we work on a contingency-fee basis, contact us to get started.