NCCI Experience Modification Rate

The NCCI Experience Modification Rate (E-Mod) is a factor that adjusts a company's workers' compensation insurance premium based on their past safety record. It compares a company's claim history to the industry average: a rate below 1.0 means fewer or less costly claims, resulting in lower premiums; above 1.0 indicates more or costlier claims, leading to higher premiums. The purpose is to reward safe workplaces and encourage better safety practices. Essentially, the E-Mod helps tailor insurance costs to reflect a company's individual safety performance.