Glossary
Experience modification rate
Also called: EMR · experience mod · e-mod
The experience modification rate is a multiplier applied to your workers compensation premium based on your claims history compared with other businesses in your classification.
An EMR of 1.0 means your claims experience is average for your trade. Below 1.0 and you pay less than the base rate; above it and you pay more. It is calculated from several years of history, so a bad year follows you for a while and a good one takes a while to earn.
It is not only a cost. Many general contractors and public agencies set a maximum EMR to bid at all, so it can decide whether you are eligible for work rather than just what your insurance costs.
Why it matters to a contractor
It multiplies a cost that is already one of the largest lines in a contractor’s overhead, and it can gate access to commercial work entirely. Because it is calculated from reported payroll and claims, accurate payroll classification in your books feeds directly into it.
Work it out on your numbers