Workers’ compensation insurance – Experience rating modifiers make all the difference
Abstract: Among the primary formulas that determine every construction company’s workers’ compensation insurance premiums is the experience rating modifier (ERM). Knowing even just a little about where it comes from and what it does can help a business better control its insurance costs. This article explains how insurance companies calculate an ERM and discusses what contractors can do to submit fewer workers’ comp claims. A sidebar offers a hypothetical example of two similar contractors with dissimilar ERMs — and the financial difference this makes.