Workers Compensation is a type of insurance that provides wage compensation and medical benefits to employees hurt on the job. Accepting Workers Compensation for an employee means it relinquishes its right to sue the employer for negligence. Pain and suffering and negligence are typically not available in workers compensation plans/claims. Workers compensation is paid as a tax on wages paid entirely by employer. EMR (Experience Modification Rate) is a factor used by insurance companies which estimates past cost of injuries and future risk based on an employer’s track record for safety incidents and WC claims. Above a 1.0 means there has been a worker’s compensation claim paid. An increased EMR sticks with a business for 3 years.