Errors in Experience Modifier calculations are common. It's a mistake to assume your Experience
Modifier is correct just because you have claims.
A lot of those who find themselves here need immediate help because:
1) Your Experience Modifier increased and it's
making your premiums unsustainable
2) Your Experience Modifier
increased and you lost business or opportunities to quote business
3) Your Experience Modifier is
forcing you into the assigned risk pool
Others find themselves here because:
1) You have some unusually high claim activity and fear your Experience Modifier will rise in the future
2) You are (understandably!) confused about how an Experience Modifier is promulgated
3) Nobody can explain to your satisfaction the causes of fluctuations in your Experience Modifier
Errors in Experience Modifier calculations are so common that we don't charge for our time. Our fee is contingency based. Call us to discuss your unique situation.
you're not sure whether or not it would be beneficial to have an expert
review your Experience Modifier, please contact us at your
convenience, read below, and explore the rest of this site; especially
the EMR Split Point Page
to learn how recent changes to the Experience Modifier algorithm have already impacted your EMR. Whether you have a few or
many claims in your Experience Modifier, errors that increase
your EMR are common.
Experience Modifier, Experience Modification Rate, EMod, XMod, EMR,
Experience Modification Rating, Experience Mod, etc. Whatever you call it this
number it can have a profound positive or negative effect on your
The benefits of having a low modifier snowball, and, likewise, a
high modifier's harmful effects snowball as well. If your EMR modifier is higher than
it should be you'll certainly pay more than you should but also in
other ways you may not imagine. And, you may also be losing business;
losing money on the expense and revenue side of the equation! Read further or click Reduce Your EMR.
Everyone understands that the higher their experience modifier, the higher theirpremiums. If your EMR modifier is overstated due to your
carrier misreporting data or not following NCCI rules or state
regulations, then you are paying too much. There are numerous examples
of how these rating errors multiply their harmful effects.
One example I like to use, being located in St.
Louis across the river from Illinois, is the Illinois Contractor's
Credit Premium Adjustment Program. Illinois has a special rule that requires
a modifier below 1.00 to qualify for these lucrative credits. Well, we've
had clients in IL whose EMR modifier we've reduced from above a 1.00 to below a
1.00. As a result, these customers restored 2 credits to their policies when, prior to
these corrections, their carriers were "double dipping" from 1 original
There are many industries in which the submission of NCCI Experience Modifiers for new business proposals and contract
renewals is common. Construction is one which comes to mind first for
But, do you work for or aspire to perform workfor large, sophisticated corporations? Office
cleaning, transportation, etc? You will most likely need an experience
modifier factor below a certain threshold to win the business
and retain it annually.
Make sure your experience modifier is
accurate and avoid not only losing money, but also losing opportunities
that may be on the horizon for your firm.
If you haven't had an expert review your Experience Modifier, how can you know that your broker found the best possible rates from among the carriers with whom he/she does business?
Underwriters have various guidelines forwriting business; experience mod rating, lines of
business, class code, premium size, credit history, etc. They all come
into play. But, rest assured, experience modifier level IS one of those
Some of the underwriters and carriers with whom
your broker does business could have easily declined to quote your
business based on your EMR modifier. And, you might never knowabout it.