Business & Finance Business Insurance

What Is an EMR Rate?

    Significance

    • Your EMR determines how much you pay for workers' compensation insurance and helps you measure the efficacy of your safety programs. Many companies will not subcontract to companies with high EMRs, according to Western National Insurance.

    Features

    • The average EMR measures 1.0. An EMR 30 percent lower than average measures 0.7, while an EMR 30 percent greater than average equals 1.3. The National Council on Compensation Insurance calculates your EMR by examining your past claims history and comparing it to other companies in your industry.

    Considerations

    • You can decrease your EMR by training your employees to work safely and proactively managing any claims that occur. Investigate accidents immediately and adjust safety plans accordingly. Return injured employees to work as soon as possible, even if they require retraining or lighter duty.

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