Experience Modification Rate (EMR)
Definition
A factor used in workers compensation insurance that adjusts your premium based on your company's actual loss history compared to the industry average. An EMR of 1.0 is average. Below 1.0 means fewer losses than average (lower premium). Above 1.0 means more losses (higher premium). Your EMR directly affects your insurance costs.
When This Matters
Your company's EMR is 0.85, meaning your workers comp losses are 15% below the industry average. This reduces your premium by 15% compared to the manual rate.
Related Terms
Have a question about experience modification rate (emr)?
Ask the Professor about Experience Modification Rate →