What is EMR and How it Can Help You and Your Business: Free Member Webinar

The Experience Modification Rate (EMR), also known as the X-Mod, is a numerical factor that reflects a company’s past workers’ compensation claims experience compared to other businesses in the same industry. It is primarily used by insurance companies to adjust a business’s workers’ compensation insurance premium based on its claim history. An EMR of 1.0 is considered average; a rate below 1.0 indicates better-than-average safety performance, while a rate above 1.0 indicates worse-than-average performance.

Importance of EMR:

• Insurance Premiums: EMR directly affects the cost of workers’ compensation premiums. A lower EMR can lead to significant savings, while a higher EMR can increase costs, making it essential for businesses to manage their safety practices effectively.

• Safety Benchmarking: EMR serves as a benchmark for comparing a company’s safety performance against its peers. A lower EMR suggests fewer accidents and injuries, which can motivate businesses to improve their safety protocols.

• Contractor Selection: Many general contractors and project owners require subcontractors to have an EMR below a certain threshold (often 1.0) to qualify for bidding on projects. A high EMR can disqualify contractors from public and large private-sector jobs.