Safe Solutions

Experience modification rates

Insurance is a significant cost for roofing contractors, and workers' compensation is a substantial part of insurance. Because your experience modification rate (EMR) directly affects your premium, it is essential you understand how your EMR is calculated.

Each state has certain workers' compensation premium rates, and an EMR is based solely on a roofing contractor's individual performance. Following is an explanation of EMRs and how they are calculated.


States calculate an EMR, called a factor, for each business owner (above a given premium size depending on the state) to compare that business's loss history with the average history for that type of business. An EMR is meant to provide business owners with a financial incentive to provide a safe workplace. Having an EMR of 1.00 is average. With an EMR below 1.00, you will have earned a credit and your premium will be lower than the average in your state. If your EMR is above 1.00, you will have a debit and your premium will be higher.

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