The Experience Modification Rate compares a business’s own claims history to what’s expected for its industry, directly affecting the premium it pays.
How it works
Actual losses divided by expected losses for the industry classification gives the EMR — 1.0 is average, below 1.0 is a safety-record discount, above 1.0 is a surcharge.
What this does not include
This is a simplified actual-over-expected ratio — the real NCCI formula weights large claims differently from small ones and applies a state-specific credibility factor, so an actual carrier worksheet will differ somewhat from this simple ratio.
How to use this calculator
- Enter actual losses and expected losses for your industry classification.
Frequently asked questions
How is EMR different from the premium itself?
EMR is a multiplier applied to a base (“manual”) premium calculated from payroll and classification rate — this site’s workers-compensation-premium calculator shows how EMR is applied once you have it.
How far back does the claims history go?
Typically 3 years of claims data, excluding the most recent policy year, to smooth out short-term fluctuations.
Can a business lower its EMR?
Yes, over time, by reducing claim frequency and severity through safety programs — the effect shows up gradually as older, worse years roll out of the 3-year window.
