An employer’s experience modification rating (EMR) not only affects its workers’ compensation rates, but may well impact its ability to secure important contracts. Prospective clients may refuse to contract with an employer that has an EMR of 1.0 or above due to concerns over safety. The opportunity to create a business relationship may be lost. Sadly, an employer’s EMR is not based upon fault; it is based on what is paid (or payable) in workers’ compensation benefits. But if your loss was caused by a third party you may be able to claw back some or all of the benefits paid by pursuing a subrogation claim. A recovery in your subrogation case will be applied against the amounts calculated to determine your EMR, potentially lowering your EMR and reducing workers’ compensation premiums. By lowering your EMR, recoveries enhance the ability to maintain or obtain critical contracts. Also, under Minnesota law any increase in workers compensation premiums caused by the fault of a third party also be recovered from an at-fault party. For these reasons, it is critical to participate in the settlement process and mediation of the civil liability claims of the injured employee. Contact Brian Kluk at [email protected] or 952-345-9702.