Experience Rating Adjustment Factor (ERA); are you familiar with this term? If not and you are an Illinois employer, you’re not taking advantage of a key controlling factor in minimizing your workers compensation experience modification.
The ERA is a credit to the claim costs that are used in calculating your experience mod. If no indemnification (wages) is paid to the employee by the insurance company, your cost for the claim is reduced by 70%. This was developed to encourage employers to report small claims.
This factor alone highlights the importance of an effective return to work program. With our software calculation tools, we can show you the premium impact on a single claim.