EH&S Insider Blog

Understanding the Experience Modification Rate (EMR) and Tools to Help Improve

How Does the EMR Fit Into the Calculation of Workers' Compensation Premiums? The EMR is determined via a standard formula that considers company size, company class codes and the cost, frequency and duration of prior claims. Class codes associate the company with similar companies within an industry. Class codes come from the NCCI, if the company is within one of the 39 states that use the NCCI standards. 
Topics: Experience Modification Rate

EMR - Experience Modification Rate

  (EMR) Experience Modification Rate: Explained An Experience Modification Rate (EMR) has a significant impact on the worker's compensation insurance premium of a business. The EMR is a metric that insurers use to calculate worker's compensation premiums; it takes into account the number of claims/injuries a company has had in the past and their corresponding costs. An EMR of 1.0 is the benchmark average -- if your company's EMR number is lower than average, (e.g. less than 1.0), your worker's compensation premium will be lower than average. An EMR number greater than 1.0 will result in a higher than average premium.
Topics: Experience Modification Rate