EXPERIENCE MODIFICATION RATE (EMR)
A company’s MOD Rate (EMR) is a numeric figure used by insurance companies to gauge the past costs of worker injuries and as a predictor of future behavior. Basically, the lower your company’s EMR, the less costly your workers compensation. An EMR of 1.0 is the industry average, so a higher EMR will cause your insurance premiums to increase, and sometimes, insurers will even drop you as a client.
No Injury = No Claim = Lower EMR. Oftentimes, the EMR reflects a company’s safety culture. At Verdi, our teams adherence to and support of safety rules and OSHA regulations, along with management’s commitment to providing and promoting a safe work environment, has helped reduce hazards and prevent injuries, therefore lowering our EMR to well below 1.0.
A lower EMR provides constructors with other advantages as well:
- Lower overall bids as they do not have to carry as much insurance cost
- Ability to bid on more work as certain projects require an EMR of 1.0 or below
- Instills client confidence in contractor’s ability to deliver the project in the safest manner
Working safely, and keeping an eye on each other’s actions, as well as our own, is of the utmost importance.