What Is an EMR (Experience Modification Rate)?

The short answer

Your EMR, or experience modification rate, is a number that compares your workers’ compensation claims history with other businesses in the same line of work. It adjusts what you pay for workers’ comp, and it’s one of the first things a GC looks at on a prequalification form, because it’s a quick signal of safety record.

How to read the number

• 1.0 is average for your industry.
• Below 1.0 (for example 0.85) means a better-than-average claims history.
• Above 1.0 (for example 1.25) means a worse-than-average history, which usually raises your premium.

Some GCs set a maximum EMR for subcontractors they’ll hire. If yours is above their limit, some will still consider you with an explanation or a written safety plan, so ask.

Where the number comes from

A rating bureau calculates it: NCCI in most states, or a state’s own bureau in others. It’s based on your payroll and claims over a past period, usually three years, not counting the most recent year. That lag is why a good year takes a while to show up.

Where to find yours

• Ask your insurance agent. This is the fastest route, and they can send a letter stating your EMR.
• Look for an experience rating worksheet from the rating bureau among your workers’ comp paperwork.
• Check your workers’ comp policy documents, where the modifier is often listed.

Many prequalification forms ask for the last three years, so keep all three on file.

What if you don’t have one?

Smaller businesses often don’t qualify for experience rating yet, so they have no EMR. That’s normal. Don’t leave the field blank and don’t guess. Ask the GC how they want it reported. Many accept “not experience rated” with a short letter from your agent.