Word-of-the-Month: Experience Modification Rate

Experience Modification Rate (EMR) is a number used by insurance companies to weigh both past cost of injuries and future risk. The lower the EMR of your business, the lower your worker compensation insurance premiums will be. Usually three years of past information are used to determine the experience modifier for a workers’ compensation policy.

With the start of a new fiscal year, Stahl Construction’s Experience Modification Rate has decreased yet again from 0.77 to 0.74. 0.74 is the lowest possible rating that Stahl could achieve with its current payroll. This decreasing experience modifier reflects declining workers compensation claims relative to total payroll cost. In addition to receiving a monetary reduction in insurance costs, a low EMR is also a broad measurement of a contractor’s commitment to safety. An EMR substantially below the construction industry average of 1.0 demonstrates that Stahl Construction has an outstanding safety record relative to our competitors.