Experience Modification Rate (Mod Rate or EMR)
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 Oil and gas Users Council (MCUC), the following EMR chart indicates the relative effectiveness of a contractor's SMS.
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, the lower the EMR, the more effective the contractor's overall safety management system. Therefore the EMR should be a serious consideration when choosing contractors to work on the oil and gas project. Using the EMR 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.
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2-6. Which of the following Experience Modification Rate (EMR) ranges indicates that the contractor has the most effective SMS?
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