In our industry, EMR stands for Experience Modification Rate. Ultimately, it is a measure of safety within a company. Insurance companies use this number to determine how often they believe that certain company will file a worker’s compensation claim.
An EMR of 1.0 is average, and new businesses will sit at this number throughout their first few years while their EMR is established. From then on, insurance companies will use information from other companies within the same industry to measure individual scores. A rate above 1.0 indicates more claims and a less safe environment, while anything under 1.0 shows lower risk. Information used to measure these numbers include the number of incidents, the type, and the amount paid out for each one. However, companies don’t just want a low EMR for lower insurance rates. Considering this is one of the few performance standards that is measurable across the board, it effects a company’s job capabilities. Many contracts require a certain EMR to even bid on a job, and oftentimes, preference is given to the lowest scores. This is true for private and government contracts. Don’t miss out on job possibilities or spend unnecessary money on preventable accidents. Make sure you have systems in place to adequately train and keep employees up to date on best practices and safety information. Preplanning for jobs, establishing safety plans, and actively enforcing safety policies can have a large impact on a company’s EMR rating in future years. With our 2020 EMR rating sitting at 0.72, RJ Smith remains focused on safety practices and procedures. We are able to maintain our low rating by offering rigorous training and awareness programs for our entire company. RJ Smith is lucky to have employees and clients that embrace our strong commitment to safety and help us to improve every day. For more information on our practices and procedures, explore our page about Safety .
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