How does the experience modification rate affect tower contractor premiums?

The experience modification rate (EMR or mod) is a multiplier applied to your workers compensation premium based on your company's loss history compared to the average for your class codes. A mod of 1.0 means average. Below 1.0 means better-than-average loss experience (lower premium). Above 1.0 means worse-than-average (higher premium). For tower contractors, the mod has outsized impact because the base rates for class codes 3724 and 7601 are already high. A tower contractor with a 1.3 mod is paying 30% more on an already-expensive base rate, which can add $30,000-$80,000 to annual premium for a mid-size crew. The mod is calculated using three years of loss history with a one-year lag. A serious climbing injury in 2024 will begin affecting your mod for policies renewing in 2026 and continue impacting it through 2028. Beyond premium impact, many turf vendor MSAs set maximum EMR thresholds, commonly 1.0 or 1.25. Exceeding this threshold disqualifies you from working under that MSA regardless of your other qualifications. Managing your mod through safety programs, return-to-work programs, and claims management is both a cost issue and a market access issue.