DEFINITION: An Experience Modification Rate (more commonly known as
“X-Mod” rate or EMR) is a number used by your worker’s compensation insurance provider to determine the cost of injuries and future risk. It is typically calculated using the cost of claims by your company compared to the average cost of claims in your particular industry, which is then compared to the average X-Mod Rate of 1.0. You want the number to stay as far below 1.0 as possible to keep your premiums lower. Your premiums will typically increase as your X-Mod rate increases. Your X-Mod rate is re-assessed annually with your workmans comp renewal.
X-MOD RATES AND OSHA. An X-Mod rate of 1.25 or higher will prompt a OSHA fine, which may be followed by an inspection. The fine is based on your worker’s compensation payroll amount and ranges from $100 to $10,000.
HOW EEAP CAN HELP? If your X-Mod is above 1.25, it’s a matter of time before OSHA arrives. EEAP, The Safety People can provide you with a FREE Mock OSHA Inspection ahead of theirs, so that you can know what to fix and correct before they discover the issues. One of our seasoned safety professionals will walk around your facility or jobsite with you and point out safety hazards and potential fines.
EEAP’s ongoing OSHA compliance support has proven over and over to help our clients lower their X-Mod rates. Our ongoing support is specifically designed to reduce injuries. Since your X-Mod rate is directly related to your injury claims, it’s no wonder why our clients typically enjoy lower X-Mod rates and subsequently lower insurance premiums. Our ongoing support includes the following services: