What the Experience Modification Rating (EMR) means
An Experience Modification Rating—also called an EMR or MOD rating—is the insurance standard for pricing workers’ compensation coverage. The EMR score considers a company’s history and past cost of injuries to calculate future risks.
- EMR = 1.0: Company is considered no more or no less risky than another.
- EMR < 1.0: Company with EMR less than 1.0 is considered safer than most.
- EMR > 1.0: Company with EMR higher than 1.0 is considered riskier than most
EMR ratings affect construction subcontractors like Painters USA in two ways:
- Cost and availability of workers’ compensation insurance, which must be calculated into pricing on bids and projects.
- Our ability to bid on a project or be considered, as some facility managers / business owners include an EMR threshold as a pre-qualification factor.
Based on actual insurance and workers’ compensation claims reported to the National Council on Compensation Insurance, Painters USA has an industry-leading EMR rating. We are happy to make this information available to prospective clients upon request.
Value to our commercial / industrial clients
Workplace safety and workers’ compensation records are critical considerations for any business, large or small. EMR ratings are useful in that they gauge potential risk.
Because of our good EMR rating, Painters USA is able to:
- Better manage workers’ compensation and other insurance costs.
- Bid on and be considered for projects that include a required EMR threshold.
- Give another assurance of our commitment to worker and job site safety.
Our project plans include safety considerations, with daily check-ins and checklists to ensure every crew member routinely follows all safety practices for the duration of a project.
About National Council on Compensation Insurance (NCCI)
EMR ratings rely on claims data, and most states have designated NCCI as the licensed rating and statistical organization for their workers compensation insurance. (Other states are either an independent bureau state or set rates themselves as a monopolistic state.)
NCCI gathers data, analyzes industry trends, and provides objective insurance rate and loss cost recommendations. For more information, you may go to the NCCI website.