An EMR is an Experience Modification Rate, which is a score used to calculate workers’ compensation insurance premiums. It’s sometimes referred to as an MOD rating or Mod-Factor, and it’s important for any construction company to keep track of. The lower a contractor’s EMR, the more money they will save on workers’ comp insurance premiums.
The EMR is based on real information and the history of actual insurance claims over a three-year period. Insurance agencies then use this information to gauge past cost of injuries and future risk. Contractors can improve their EMR by implementing and enforcing thorough safety programs, which will lead to fewer workers’ compensation claims.
EMR is a significant factor when it comes to bidding for work. Many project owners have a minimum EMR requirement before they’ll consider a contractor for work. Some even have EMR standards that can prevent contractors with a high EMR from bidding at all.
Construction is inherently dangerous, so it’s important to take steps to protect your employees and maintain a low EMR. By ensuring that your employees are properly trained, implementing robust safety programs and conducting regular inspections, you can reduce accidents and injuries on the jobsite. This will help you avoid costly workers’ compensation claims, which can increase your EMR and make it more difficult to get jobs.