What is an EMR? What is a good EMR? Why Does it Matter?
The EMR, also known as the Experience Modification Rating, is a number that reflects a company’s historical cost of workers compensation claims compared to the average for similar businesses in the same industry and state. It uses claims from the previous four years excluding the most recent year. It’s used by insurance companies to determine workers’ compensation premiums and as a factor in awarding contracts by General Contractors.
An EMR of 1.0 is considered an industry average. Below 1.0 is considered better than average and above 1.0 is considered higher risk than the average. While many disagree with using the EMR as a rating for safety or safety culture, there are very few other quantifiable measurements for safety besides OSHA recordables which can be subjective.
BCS has historically had an EMR at industry-average due in part to the nature of the concrete industry and carrying the risk of several hundred employees. However, just recently its EMR has fallen dramatically due to a fundamental company cultural shift emphasizing safety over the previous four years. You may think that a .20 drop (.98 to .78) or an apparent 20% is not significant) however, the EMR uses a progressive reduction formula. In other words, .90 EMR is more just 10 percent better than a 1.0 EMR. Correspondingly, .20 less on an EMR is significantly more than 20 percent better. Some GCs will even award extra points to subcontractors with an EMR below 1.0 in their rating system when evaluating subcontractors who are vying for the same project.
Regardless of what role the EMR should or should not have in evaluating a company’s safety program, BCS has arrived at an elite level of safety among its’ peers. This is the result of an exceptional injury claim management, continuous training programs and a management team focused on added safety value for its clients. This mindset tries to bring safety to the forefront as the differentiator in the highly competitive industry of commercial concrete in Central Texas.
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