Expert Experience Rating Production Service

An NCCI experience rating is a workers compensation factor calculated by the National Council on Compensation Insurance in many states. It compares an employer’s actual loss history to expected losses for similar businesses. The resulting experience modification rate, often called an EMR or mod, can raise or lower premiums depending on payroll, classification codes, claim frequency, and claim severity.

Your experience modification rating is usually listed on your workers compensation policy, renewal documents, experience rating worksheet, or carrier reports. Employers can also request it from their insurance agent, carrier, or rating bureau. PCI Consultants reviews these documents alongside loss runs, open claims, and classifications to confirm whether the mod reflects accurate data and appropriate rating treatment.

A good experience modification rate is typically below 1.00 because it suggests your losses are better than expected for your industry and payroll size. A 1.00 is average, while a rate above 1.00 may increase premium costs. The best target depends on claim history, classifications, and safety controls, but lowering claim frequency and reserves can improve future ratings.

Yes, rating errors can often be reviewed and challenged when they involve incorrect payroll, misclassified employees, inaccurate claim data, duplicate losses, or outdated reserves. Corrections usually require documentation from policies, audits, loss runs, and carrier records. PCI Consultants helps identify these issues and works toward resolution strategies that may reduce premium impact.

The experience rating factor is applied to the workers compensation premium calculation, so even a small change can meaningfully affect cost for high-premium employers. A higher mod may increase annual premium, while a lower mod can create savings. Claim management, accurate classifications, and risk controls all play important roles in improving the rating over time.

Organizations with significant workers compensation premiums, multiple classifications, open claims, or low claim rates relative to premium costs often benefit most. PCI Consultants specifically supports businesses such as CDPAP companies and employers facing high state-mandated premiums. These organizations may have opportunities to reduce costs through better rating review, claims oversight, and program structure.

A strong review usually starts with current and prior workers compensation policies, experience rating worksheets, payroll audits, class code details, loss runs, open claim reports, and renewal pricing. These records allow the consultant to compare premium calculations against actual operations and claim activity. Complete documentation helps identify classification, reserve, or rating issues more accurately.

Some savings may be realized immediately when a new program structure reduces upfront premium and improves cash flow. Other savings develop over time as claims are managed, classifications are corrected, and future experience ratings improve. PCI Consultants’ programs may use high deductible or guaranteed-payment policies to help employers retain more premium dollars while maintaining strong carrier coverage.