Experience modifier (EMR) in Arizona
The experience modification rate (EMR) is a multiplier applied to your manual workers comp premium in Arizona, calculated by NCCI using your last three full policy years of payroll and loss data. An EMR below 1.00 reduces premium; above 1.00 increases it. The EMR drops off the oldest year and adds the most recent year each annual recalculation. Verified 2026-05-09.
How EMR works in Arizona
The experience modification rate (EMR) is a multiplier applied to your manual workers comp premium in Arizona, calculated by NCCI using your last three full policy years of payroll and loss data. An EMR below 1.00 reduces premium; above 1.00 increases it. The EMR drops off the oldest year and adds the most recent year each annual recalculation.
The formula compares your actual losses to expected losses for an employer of your size and class mix in Arizona. NCCI weights primary losses (small frequency-driven claims) more heavily than excess losses (large severity-driven claims), which is why frequency reduction is the fastest way to drop a mod. The unit-stat report is filed by your carrier 18 months after each policy expires, and the mod issued for your next renewal uses the three most recently filed years.
Eligibility threshold
Employers below a minimum premium threshold (typically about $5,000 to $7,000 averaged across three years, varies by state) receive a default mod of 1.00. Once you cross the threshold and have three years of data on file, NCCI publishes a calculated mod for the next policy year. Arizona carriers price the manual premium first using the published filed rates, then multiply by the mod, then apply schedule credits or debits.
How to drop your mod
The two biggest levers are claim frequency and return-to-work. Frequency: every reported claim, even medical-only, hits the mod. Push claims through the carrier's medical-network early so injuries get treated and closed without becoming lost-time. Return-to-work: bring injured workers back on light duty within the indemnity waiting period (typically 7 days in Arizona) so the claim never accrues lost-time indemnity. Arizona carriers offer schedule credits up to 25% on top of the mod for employers with documented safety programs and clean loss histories.
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FAQs
What is an EMR (experience modifier) in Arizona?
The experience modification rate (EMR) is a multiplier applied to your manual workers comp premium in Arizona, calculated by NCCI using your last three full policy years of payroll and loss data. An EMR below 1.00 reduces premium; above 1.00 increases it. The EMR drops off the oldest year and adds the most recent year each annual recalculation.
Who calculates EMR in Arizona?
NCCI calculates and publishes the EMR for Arizona employers above the eligibility threshold (typically $5,000 to $7,000 in annual premium across three years, varies by state). The mod is recalculated each policy year using the most recent three completed years of unit-stat data reported by the carrier.
When does my Arizona EMR start?
Most Arizona employers become eligible for an EMR in their fourth policy year, once three full years of premium and loss data are on file. Employers below the eligibility threshold get a default mod of 1.00 (manual rate) and pay manual premium without adjustment.
How can I lower my EMR in Arizona?
EMR responds to two things: claim frequency and claim severity. Frequency hurts more than severity, ten $5,000 claims drag the mod up far more than one $50,000 claim. Push every claim under the medical-only threshold (typically $2,000 to $5,000 depending on state) where NCCI treats it at 30% of stated value, instead of letting it become a lost-time claim. Run a return-to-work program so injured workers come back on light duty before the claim becomes lost-time. Keep loss runs current and audit them for closed claims that should be valued at zero.
Does my EMR follow me if I move to a different Arizona carrier?
Yes. The EMR is a published number issued by NCCI and is portable across every carrier writing in Arizona. Switching carriers does not reset your mod; carriers also see your loss runs as part of underwriting, so the new carrier prices the policy on the same data.
Does EMR stack with schedule credits in Arizona?
Yes. EMR is applied to manual premium first, then the carrier's schedule credit (up to 25% in Arizona) is applied on top. A 0.85 EMR plus a 15% schedule credit on a $10,000 manual premium results in a final premium of about $7,225 ($10,000 × 0.85 = $8,500 × 0.85 = $7,225).