Tips to Lower Your Experience Modification Rating

Workers’ compensation uses an experience modification rating to determine annual premiums. By lowering EMR insurance costs can go down. Here are a few tips to help you lower your EMR.

Employee Classifications

Make sure your employees are properly classified. Misclassification can increase the rates for insuring employees that otherwise would be considered lower risk. For example, classifying your secretary as a construction worker increases the risk of that employee as construction is more hazardous than sitting in an office.

Risk Management

An effective risk management plan can decrease the number of workers’ compensation claims. By decreasing the number of claims, your EMR goes down as your company is seen as less risky. A consistently lower than average claim filing positively affects the probability of claim costs in the future. The website reports that EMR uses future probabilities as part of the company’s rating.

Business Size

Because most companies use the three prior years to determine the future claims of a company, smaller businesses may be more affected by claims than larger claims. By implementing safe business practices from the start, you can continue to have lower claims as your business grows in size.
The EMR insurance metric is specific to workers’ compensation claims. These tips can help you lower that value over time improving your business and saving money on insurance.