Experience Modification Rate (Mod Rate or EMR)
The Experience Modification Rate (EMR) has strong impact upon a business. It is a number used by insurance companies to gauge both past cost of injuries and future chances of risk. The lower the EMR of your business, the lower your worker compensation insurance premiums will be. An EMR of 1.0 is considered the industry average. (Source: Safety Management Group).
According to the Michigan Construction Users Council (MCUC), the following EMR chart shows the relative effectiveness of a contractor's CSMS.
- 0.30 - 0.71 = Superior - Distinguished results
- 0.72 - 0.81 = Effective - Impressive results - Obvious commitment
- 0.82 - 1.04 = Average - Within industry norm
- 1.05 - 1.29 = Inadequate - Conspicuous past problems
- 1.30 - 2.05 = Poor - Lack of safety involvement
As you can see, safety is a serious consideration when choosing contractors to work on the construction project. Using these criteria will not only result in selecting a higher level of contractor safety, it will also result in selecting a contractor that will be more professional in all aspects of the contracted work that will be performed. See the ABCs of Experience Rating, from NCCI for more information on the EMR.
Knowledge Check Choose the best answer for the question.
2-7. Which of the following contractors has the best safety record compared to the average within their industry?
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