What Is EMR — and How It Affects Your Worker’s Compensation Insurance Rates

If you’ve ever filled out a prequalification form, reviewed a workers’ compensation renewal, or pursued a new construction or industrial project, you’ve likely been asked one question early in the process: What is your EMR?

The Experience Modification Rate (EMR) is often referenced but rarely explained in clear, practical terms. Yet it plays a significant role in how insurers assess risk—and how your company is viewed by clients, owners, and general contractors.

So what is EMR, and how does it actually affect your workers’ compensation insurance rates?

What Is EMR?

EMR stands for Experience Modification Rate. It’s a numerical factor used by insurance carriers to compare your company’s workers’ compensation claims history to other businesses performing similar work.

In simple terms, EMR answers this question:

How does your injury and claims history compare to the industry average?

Here’s how it works:

  • An EMR of 1.0 represents the industry average
  • A number below 1.0 indicates fewer or less severe claims than average
  • A number above 1.0 indicates more frequent or more severe claims

EMR is calculated using a rolling multi-year period, which means it reflects historical performance—not just recent activity.

How EMR Affects Workers’ Compensation Insurance Rates

EMR directly influences how much you pay for workers’ compensation insurance.

At a basic level:

  • A lower EMR typically results in lower insurance premiums
  • A higher EMR can significantly increase insurance costs

For example, an EMR of 1.20 could increase your workers’ comp premiums by 20%, while an EMR of 0.80 could reduce premiums by 20%. Over time, that difference can represent tens—or even hundreds—of thousands of dollars depending on company size and risk exposure.

Insurance carriers use EMR as one of their primary indicators of workplace risk, making it a key driver in underwriting decisions.

What Is Considered a Good EMR?

While EMR benchmarks can vary slightly by industry and insurer, most organizations evaluate EMR within commonly accepted ranges.

As shown in the chart below, EMR ratings generally fall into these categories:

What is EMR
  • Below 0.50 — Exceptional performance, reflecting rare and sustained control of claims and severity
  • 0.50–0.74 — Very strong performance, often viewed favorably by owners and insurers
  • 0.75–0.89 — Strong, better-than-average claims experience
  • 0.90–1.00 — Average to acceptable, meeting baseline expectations
  • 1.01–1.25 — Elevated risk, often associated with higher insurance costs
  • Above 1.25 — High risk, which may limit project eligibility and increase premiums

A good EMR rating is not just about achieving a low number—it’s about maintaining consistent performance over time. One strong year may improve perception temporarily, but sustained results carry far more weight with insurers and clients.

Cardinal has maintained an EMR below 0.49 since 2018, reflecting a long-term commitment to proactive safety management, training, and leadership involvement—not short-term fixes aimed at improving a single metric.

What EMR Does—and Does Not Measure

Understanding what EMR reflects (and what it doesn’t) is critical.

EMR does measure:

  • Past workers’ compensation claims
  • Frequency and severity of recordable injuries
  • Trends over a multi-year period

EMR does not measure:

  • Near misses
  • Safety leadership or culture
  • Day-to-day jobsite behavior
  • Proactive hazard identification
  • Recent improvements not yet reflected in claims history

Because EMR is a lagging indicator, it often trails behind current safety performance.

How Companies Influence EMR Over Time

There’s no single tactic that lowers EMR overnight—but there is a pattern.

Organizations that maintain a strong EMR long-term typically:

  • Engage leadership beyond minimum compliance
  • Identify hazards early and address them consistently
  • Invest in ongoing training and education
  • Investigate incidents thoroughly and apply corrective actions
  • Prioritize prevention over reaction

EMR improves when safety systems improve—not the other way around.

EMR Is a Signal—Not the Full Picture

EMR plays a meaningful role in insurance costs and project eligibility, but it’s only one part of a comprehensive safety program.

Organizations that focus solely on the number often miss the bigger picture:

  • Preventing incidents before they occur
  • Protecting workers and operations
  • Building systems that withstand growth and change

When those foundations are in place, EMR becomes a reflection of effective safety leadership.

A Real-World Example of Consistency

At Cardinal Compliance Consultants, LLC, sustained performance tells the story.

Cardinal has maintained an EMR below 0.49 since 2018, reflecting a long-term commitment to proactive safety management for our team. But that same approach carries through to the insight, guidance, and support we provide to our clients as well. Whether through training, program development, or leadership involvement, we focus on meaningful, long-term improvement rather than short-term fixes aimed at a single number.

For help building systems that influence safe behavior and outcomes, and lead to a lower EMR, contact Cardinal Compliance Consultants for a free consultation.



from Cardinal Compliance Consultants https://cardinalhs.net/blog/what-is-emr/
via Cardinal Compliance Consultants

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