Understanding the Experience Modification Rating (EMR) is crucial for companies in the construction industry as it directly impacts their ability to secure work. This rating, determined by insurance companies, reflects a company’s average losses and potential future risks compared to industry averages.

An EMR below 1 indicates low risk, offering better workers’ compensation premiums and job bidding competitiveness. Conversely, an EMR above 1 leads to higher insurance premiums and reduced bidding advantages. To address a rising EMR, companies are advised to conduct a thorough worker’s compensation trend analysis to pinpoint loss trends and their root causes. Streamlining claim handling processes, training both office staff and field workers in efficient reporting, and implementing return-to-work programs are crucial steps to improve the EMR.

Fostering a strong safety culture through company-wide safety days and regular employee training can significantly enhance safety awareness and practices. Monitoring safety Key Performance Indicators (KPIs), such as injury reports and OSHA recordables, is also essential for ongoing assessment and improvement of the company’s safety program. Implementing these measures not only improves the company’s EMR but also demonstrates a firm commitment to safety, enhancing its reputation and competitiveness in the industry.

Kevin Kolhonen, Health and Safety ManagerElectrical Construction & Maintenance Magazine