Experience rating is an important component of determining your ultimate premium. Learn more about what experience rating is, some key facts and why it is important for DSPs to understand.
What is experience rating and how does it work?
Your total insurance premium is calculated using a number of variables. For instance, business classification, location and payroll, among others, are used to determine your base premium while other factors can be considered to modify your rate, such as safety measures taken by your company to mitigate risk.
Experience rating, meanwhile, incorporates your company's loss history and payroll to further modify your premium.