Glossary

What is Experience Modification Rate (EMR)?

A factor applied to workers' compensation premiums that compares a company's actual losses to expected losses for its industry.

Full Definition

The Experience Modification Rate (EMR or E-Mod) is a multiplier applied to workers' compensation premiums that compares a company's actual loss experience to the expected losses for its industry classification. An EMR of 1.0 represents average performance; above 1.0 means worse-than-average (higher premiums), below 1.0 means better-than-average (lower premiums). The EMR is calculated by the National Council on Compensation Insurance (NCCI) or state rating bureaus using three years of loss data (excluding the most recent year). A company with a 1.25 EMR pays 25% more than manual rate; a company with a 0.75 EMR pays 25% less. Many construction contracts require an EMR of 1.0 or below.

Related Terms

Subrogation

Loss Run

Premium Audit

Explore More

Related Coverage & Services

Workers' Compensation Insurance

Workers' compensation provides medical benefits and wage replacement for employees injured on the job.

Subrogation

The right of an insurer to pursue a third party that caused a loss to the insured, recovering the amount paid on the claim.

Loss Run

A report from an insurance carrier that details all claims filed under a policy during a specified period, used in the renewal and marketing process.

Premium Audit

A post-policy-period review of actual payroll, revenue, or other exposure bases to adjust the final premium to reflect actual operations.

Business Insurance

Start Here

Have Questions About Experience Modification Rate (EMR)?

Our advisory team can explain how this concept applies to your specific situation and help you make informed insurance decisions.

Call (800) 755-3469

Discovery

We sit down with you and ask the questions most brokers never do — your assets, your family, your business, your goals.

Strategy

We map your full risk picture and design a coordinated program that strengthens coverage and reduces your total cost of risk.

Execution

We place your program with elite carriers and handle every detail — applications, underwriting, and transitions.

Ongoing Optimization

Your advisor reviews your program as your life evolves — new assets, new ventures, new exposures — so coverage never falls behind.