What is an Experience Modifier? How does it affect my premium?
The Experience Modifier is a rating factor based on the loss experience of your company compared with others in the industry. A factor of 1.00 means that you are average. An experience modification factor of more than 1.00 (1.15, for example) means that your loss history is higher or worse than average; while .85 means that your loss history is lower or better than average. This factor is used as a multiplier for your insurance rate. This means you will pay less if your claim history is better than average, but more if your claim history is worse than average. This factor is created by the National Committee for Compensation Insurance (NCCI) and is provided to all carriers to use in workers’ compensation insurance premium calculation.
