Where Does My Experience Modification Rate Come From?

If you’re a business owner or manager, a big concern is how much you will have to pay for insurance coverage, particularly with regard to worker’s compensation. A key question when planning an operations budget is “how do I find my experience modification rate”?

What Is EMR?

The experience modification rate (EMR), is used by insurance companies to try to determine the risk of your company’s future workman’s compensation claims, taking into consideration your past claims. The starting point for determining your rate is the standard for the industry that you are in. From there, it can go up or down depending on your actual claims history.
Simply put, if you have filed fewer claims than typical for your industry, your rate will be less. If you have filed more claims, it will be more. Insurance companies will look at your last three years of claims in order to make their determination so, as discussed on, improving worker safety today can have an effect the next time your policy is reviewed.


Actions such as making the workplace safer and increasing employee safety training will require some investment upfront but the rewards in fewer employee days out from injury and lower insurance premiums will make it worthwhile. It just may take a little time before it’s reflected in your bottom line.