Business Insurance
Experience Modifier (EMR)
The experience modifier (EMR or ex-mod) rewards businesses with below-average workers comp losses with lower premiums and penalizes those with above-average losses.
Last reviewed: May 2026 · Editorial methodology
Definition
The experience modifier (EMR) is a numerical factor developed by the National Council on Compensation Insurance (NCCI) or a state rating bureau that adjusts a company's workers compensation premium up or down based on its three-year claims history relative to other businesses in the same class. A modifier of 1.00 is the industry average; a business with an EMR of 0.80 pays 20% less than the base rate, while a business with an EMR of 1.30 pays 30% more. For a company with a $100,000 base workers comp premium, the difference between a 0.80 and a 1.30 EMR is $50,000 annually — a powerful financial incentive for workplace safety investment. EMR is calculated using a formula that weights frequency of claims more heavily than severity, meaning many small claims can hurt more than one large one. Many general contractors require subcontractors to have an EMR below 1.00 or 1.10 as a condition of bidding on projects. Businesses can dispute the EMR calculation if they believe a claim was incorrectly included, and working with a workers comp specialist to audit EMR data is often worthwhile.
Where this term matters
💡 Tip
Related terms
Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
Get Insurance Rate Alerts
We monitor rate filings in all 50 states. Get notified when rates change in your area — and discover new ways to save.
- ✓State-specific rate change alerts
- ✓Seasonal enrollment deadline reminders
- ✓Expert tips to lower your premiums
- ✓New coverage options in your state
Free forever. Unsubscribe with one click. No spam, ever.
Important Disclaimer
This site provides general educational information only and is not a substitute for professional insurance advice. All rates, data, and coverage details are estimates and may not reflect your actual premiums. Insurance availability and pricing vary by state, insurer, and individual risk factors. Always consult a licensed insurance professional in your state before making coverage decisions.