What is workers compensation experience modification rate?

Workers Comp Modification Factor. A modification factor is a factor applied to the policy premium for a risk to reflect variation from the experience of the average risk of a similar type. From the risk's own past experience, the experience modification rate is determined by comparing actual losses to expected losses. read more

A MOD rate contributes to how much companies pay each month in workers' compensation premiums. It is partly determined by the industry classification in which a company operates and how many OSHA recordables it accumulates. If a company's MOD rate is 1.0, they pay the industry's average rate. read more

A Simple Definition Of Experience Modification Rate. The Experience Modifier Rate, or EMR, is a numeric representation of a business’s claims history and safety record as compared to other businesses in the same industry, within the same state (ADP Guide to Workers’ Compensation Insurance). read more