An experience modification, also known as an EMR or a MOD factor, is a rating determined by insurance regulators (NCCI and CIRB), and used by insurance carriers to gauge your business’s level of risk according to industry standards.
It operates a bit like a credit score, but instead of rating your credit-worthiness, it rates the likelihood (risk) of your business filing a workers’ comp claim. The rating is based on your business performance and loss (workers’ comp claims) history from the past 3-5 years.
Not every business has an EMR; you qualify for it if you’ve had 3 full years of workers’ comp coverage, and pay $5k or more in premium annually.
An EMR of 1.0 is the standard. You can have an EMR that’s higher or lower than 1.0. The lower the score, the better.
The EMR can either be a credit or a debit applied to your workers’ comp policy. A business with a score lower than 1.0 typically pays less for their workers’ comp policy, while a business with a score higher than 1.0 may pay significantly more.
If you disagree with your EMR, in some cases there is a dispute resolution process you can pursue, but it gets complicated. Get in touch with our service team for more information.
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