- Obtain your EMR rate information from your insurance agency. All insurance agencies are required to provide the EMR rate to their corporate customers at the beginning of each fiscal year. If you are unsure about your current EMR rate, contact your insurance agent to find out what your rate is. Your EMR rate can also be found on the “Declarations” page of your company’s workers’ compensation policy.
- Decode the value of your EMR rate. EMR rates are denoted in values ranging from 0.0 to 2.0. An EMR rate of 1.0 means that no adjustment is performed before calculating your premiums. A 1.20 EMR rate means that your premiums are increased by 20 percent to compensate for a higher-than-average number of workers’ compensation claims coming from your company. Conversely, a 0.80 EMR rate would reduce your premiums by 20 percent to reward a company with a lower-than-average number of workers’ compensation claims.
- Multiply your annual workers’ compensation premium by your EMR rate to determine your adjusted premiums. If your annual workers’ compensation premium was $78,000 and you had an EMR rate of 1.20, your adjusted premium would be $93,600. If your EMR rate was 0.80, your adjusted rate would be $62,400. This can allow you to better plan for your insurance costs, and can provide valuable insight into how your company compares to the average in your industry.