EMR Calculator

Estimate your Experience Modification Rate (EMR / E-Mod) based on payroll, expected losses, and actual incurred losses. EMR is a critical factor in subcontractor prequalification for general contractors.

This calculator provides a directional estimate only. Official EMR calculations are performed by NCCI or state-specific rating bureaus using proprietary weighting factors. Consult your insurance broker for your actual EMR.

What is EMR (Experience Modification Rate)?

The Experience Modification Rate (EMR), also called E-Mod or Experience Mod, is a multiplier applied to your workers compensation insurance premium. It reflects your company's claim history compared to other businesses of similar size in the same industry and state.

  • EMR below 1.0: Your claim history is better than average. You pay less for workers comp.
  • EMR of 1.0: Your claim history matches the industry average.
  • EMR above 1.0: Your claim history is worse than average. You pay more for workers comp.

How EMR is Calculated

The NCCI (National Council on Compensation Insurance) calculates EMR using a three-year rolling period of payroll and loss data, excluding the most recent year. The formula weighs primary losses (the first portion of each claim) more heavily than excess losses, because frequency of claims is considered a stronger predictor of future risk than severity.

Why EMR Matters for GC Prequalification

General contractors routinely require subcontractors to meet a maximum EMR threshold — typically 1.0 or below — as part of the prequalification process. A high EMR signals elevated safety risk and can result in:

  • Disqualification from bidding on projects
  • Higher workers compensation premiums
  • Increased insurance costs passed through to project bids
  • Difficulty obtaining bonding

How to Lower Your EMR

  • Implement a robust safety program to reduce claim frequency
  • Return injured employees to work quickly with light-duty programs
  • Report claims promptly and manage them aggressively
  • Verify that your NCCI classification codes are correct
  • Audit your experience rating worksheet for errors annually

Track subcontractor EMR automatically during prequalification

Subcontractor Audit collects and validates EMR, TRIR, and insurance data from every subcontractor before they step on your jobsite.

Start 14-Day Free Trial