Workers’ comp premiums are adjusted by an experience modification rate (EMR) — a multiplier reflecting your claims history. Below 1.0 earns a credit; above 1.0 a surcharge.
The example
$50,000 manual, 0.85 mod.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | 50000 × 0.85 | — |
| 3 | Modified | → $42,500 |
The formula
The formula:
How it works
How it works:
- Manual premium is the base rate for your class and payroll.
- Multiply by the EMR — below 1.0 is a credit, above 1.0 a surcharge.
- The credit/debit = manual premium × (1 − mod) — the dollars saved or added.
- A lower mod from fewer claims compounds savings year after year.
Illustrative math only — not insurance, financial, or legal advice. Policy language, state regulation, and carrier rules govern actual claims, premiums, and coverage. Always read the policy and consult a licensed professional.
Try it: interactive demo
Manual premium and experience mod.
Variations
Credit or debit
Dollars saved/added:
Percent impact
From the mod:
vs a 1.0 baseline
Difference:
Pitfalls & errors
1.0 is neutral. Below saves, above costs — relative to 1.0.
Manual premium base. The mod applies to the manual, not the final, premium.
Not advice. EMR calculation is set by rating bureaus — this shows the impact only.
Practice workbook
Frequently asked questions
How does the experience mod affect premium in Excel?
What does an EMR above 1.0 mean?
How much does a lower mod save?
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