Experience modification

{
  "id": "MLC-T-INS-001408",
  "term": "Experience modification",
  "field": "Insurance and risk management",
  "definition": "An adjustment factor applied to an employer's workers' compensation premium, based on their past claims history compared to the average for similar businesses. A favorable claims record results in a credit modification, lowering premiums, while an unfavorable record leads to a debit modification, increasing them. This system incentivizes employers to maintain safe workplaces.",
  "url": "https://mlchart.com/terminology/insurance/experience-modification/"
}