Experience Rating and your Work Comp Premium
Experience rating recognizes the differences among insureds with respect to safety and loss prevention.
It does this by comparing your experience with the average employer in the same industry.
The differences are reflected by an experience rating modification, based on individual payroll and loss records, which may result in an increase (debit), decrease (credit), or no change in your Work Comp Premium.
Check out the NCCI booklet abc's of Experience Rating to further your understanding of experience rating and how it affects your workers compensation costs.