Understanding EMRs and How They Can Save You Money

Workers’ compensation can constitute a very large portion of insurance expenses for any company. One way to lower this cost without reducing coverage for your workers is by taking advantage of experience modification rates (EMRs).

How Does it Work?

EMRs take into account an employer’s average workers’ compensation related losses over a three-year period and uses this calculation to adjust insurance premiums accordingly. Businesses are compared to others in the same category of work in order to determine EMRs; this way, your performance will be compared to businesses that deal with similar risks.

How Can I Benefit?

If your business has few to no workers’ compensation claims made in the three-year period, your insurance premiums can decrease. This gives your business a financial incentive to protect workers and lower accident rates. More money in your pocket can enable you to provide better protections for your workers, which in turn can allow you to save even more in the future through EMRs.

Experience modification rates can go a long way towards saving you money by rewarding you for the safety measures that your business is already taking. By adjusting your insurance premiums based on the number of claims filed, EMRs can provided additional financial motivation to maintain a safe and happy workplace.