Experience Modification Rate (EMR) and How it Impacts Workers’ Comp Costs
Why It Matters for Brandon, Riverview, and Gibsonton Businesses
For business owners in Brandon, Riverview, and Gibsonton, controlling workers’ compensation costs is a critical part of staying competitive. One of the most influential—but often misunderstood—factors in those costs is your Experience Modification Rate (EMR).
Because workers’ compensation insurance is required for many Florida employers, understanding how your EMR works can help you better manage premiums, improve workplace safety, and protect your bottom line.
What Is an Experience Modification Rate (EMR)?
Your EMR is a numeric score insurance carriers use to compare your workers’ compensation claims history against similar businesses in your industry. It’s essentially a snapshot of how your safety performance measures up.
- EMR of 1.0 = industry average
- EMR below 1.0 = better-than-average claims history
- EMR above 1.0 = higher-than-average risk
For example, a construction company in Riverview with an EMR of 0.85 may be viewed as a safer operation than competitors, while a business with an EMR of 1.20 may face higher premiums due to prior claims.
How Is EMR Calculated?
Insurance companies typically calculate your EMR using the past three years of workers’ compensation claims data, excluding the current policy year. Factors that commonly influence your EMR include:
- Frequency of workplace injuries
- Severity and cost of claims
- Payroll size and job classifications
- Industry-specific risk factors
Even a small number of serious claims can significantly impact your EMR, which is why proactive risk management is so important.
How EMR Directly Affects Your Workers’ Compensation Premium
Your EMR acts as a multiplier on your workers’ compensation premium:
- A business in Brandon with an EMR of 0.90 could see meaningful savings year over year
- A company in Gibsonton with an EMR of 1.25 may pay 25% more for the same coverage
Over time, that difference can add up to thousands of dollars—especially for labor-intensive businesses such as construction, manufacturing, landscaping, or transportation.
Real-World Ways Businesses Improve Their EMR
Many businesses across the Tampa Bay area have successfully lowered their EMR by focusing on safety and claims management. Examples include:
- Implementing formal safety training programs
Employers who introduce regular safety meetings and job-specific training often reduce injury frequency within a year. - Returning injured employees to work sooner
Modified or light-duty return-to-work programs help limit claim severity, which can positively affect EMR calculations. - Reviewing claims for accuracy
Some businesses discover errors in payroll classifications or claims reporting that, once corrected, help lower their EMR. - Partnering with insurance professionals
Working with an experienced agency like L & M Insurance Group helps ensure claims are managed properly and safety efforts are documented—both of which matter to insurers.
Why EMR Matters Beyond Insurance Costs
In addition to impacting premiums, your EMR may affect your ability to:
- Win contracts or bids (many require EMRs below a certain threshold)
- Qualify for preferred insurance programs
- Demonstrate a strong safety culture to employees and partners
For growing businesses in Riverview, Brandon, and Gibsonton, maintaining a favorable EMR can be a competitive advantage.
How L & M Insurance Group Can Help
At L & M Insurance Group, we work with local businesses to:
- Review and explain your current EMR
- Stay on top of Florida insurance trends to be prepared
- Identify factors that may be increasing your score
- Coordinate safety and risk management strategies
- Help position your business for more competitive workers’ compensation rates
- Evaluate multiple workers comp providers to find you the best rate for the coverage you need
Ready to take control of your workers’ compensation costs?
Call L & M Insurance Group at (813) 672-4100 to discuss your EMR and explore practical strategies to reduce risk and improve long-term savings for your business. Our independent insurance agents are here to help you secure workers’ compensation coverage at an ideal rate.
This blog is intended for informational and educational purposes only. It is not exhaustive and should not be considered legal or insurance advice. Please contact your insurance professional for guidance specific to your situation.
