We recently received our 2022 EMR rating. But what does EMR mean? EMR stands for "Experience Modification Rating,"
and everyone starts with base of 1.0 meaning baseline essentially 0.
The EMR rating is what the workers compensation insurance companies use to track and rate the risk of the Contractors that have workers compensation insurance.
If your EMR rating is less than 1.0 like 0.99 or lower then this means you have a very good EMR rating and you have few or no major claims or injuries reported in at least the last 3 years.
A Roofing Contractor has to have had Workers Compensation Risk Insurance for at least 3 years before they can be rated, so newer contractors with less than 3 years of experience are still considered risky - until they can prove they are safe companies and adhere to safe OSHA practices and other regulations.
An EMR rating is important because if your roofer has a higher EMR rating than 1.0 this will often be reason for many bigger companies to disqualify the Roof Company - because the bigger the company that owns the roof that is being worked on, the bigger the chance that if a worker if is injured, they will sue the owner when and if the Contractors Workers Compensation limits are exhausted.
Most commercial Real Estate and local government building and roof owners will require a 1 to 2 million general liability and a
500k Workers Compensation insurance requirement, as a minimum.
If your company is a Fortune 500 or Fortune 100 company, then the EMR is even more important because every worker that goes on the roof, will likely know that the owner has deep pockets and this is when the danger really comes, when you have contractors who do not screen or train - or care - about safety and hire people who are really only out to get a free ride and make a fraudulent claim, or fake a serious injury.
Therefore, many fortune 100 companies now require the Roof Contractor to have an EMR rating that is 1.0 or less. By having such a low EMR rating - below 1.0 - you can be pretty sure that the company has at least gone 3 years with no or low injuries compared to their competitors and the industry standard.
The longer the company has been in business with no OSHA 300A violations or claims - the more desirable they will be to work with - because the Owner now has an independent way to judge the risk factor of hiring a company that has a good vs bad EMR rating...
1.0 or less if acceptable and anything more than 1.0 is considered a "Risk", and 1.20 would be pretty risky - indicating the contractor has had claims.
In the EMR report you will be able to see the number of claims they had - and if there aren’t any it will be zero on those columns. 0.96 is Excellent and the lower the rating the better the company safety record is.
#TheEmpireWay
Source: MyComply.Net
