The experience modifier, often referred to as the "experience modification rate" (EMR), is a numerical value used primarily in workers' compensation insurance to assess an employer's claim history in relation to the industry average. It reflects the employer's past loss experience compared to similar businesses in the same industry. Here's how it works: 1. **Calculation**: The experience modifier is calculated based on the frequency and severity of workers' compensation claims an employer has had over a specific period, usually three years.
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