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Understanding Your EMR Score Better

As you know by now, there are many aspects that you need to take note of when running a company. Essentially, you need to secure the right insurance plans for your company. If you have employees working for the company, you need to make sure that you get proper workers’ compensation insurance. This kind of insurance has become a requirement for all companies in many states. It is very much important to get this kind of insurance nowadays owing to the fact that work-related accidents usually happen when you least expect them to. In association with workers’ compensation insurance, you have to be aware of your EMR rating too. For this kind of insurance, your EMR rating is very important. Click for more information about EMR rating, its significance, and what you can do to lower it. Lowering your EMR rating is vital because it is only then can you get lower premiums for this kind of insurance.

What EMR essentially means is experience modification rating. You can also call this rating as MOD factor or rating. You can determine the price of the premiums for your workers’ compensation insurance with the use of this rating. For third parties to get an idea of future risks that your company may be dealing, they take the time to look at your history.

In construction, for instance, it is very common for insurance companies to use your EMR rating for them to know how much you’ve spent in the past for injuries and what future risks they may be. When it comes to EMR rating, the current average is 1.0. When you have a company EMR rating that is below this number, your company ken be considered as safer than other companies. In short, you have lower premiums for your workers’ compensation insurance.
Now if your company gets an EMR rating that is beyond 1.0, your company will be deemed a riskier one. You may have a hard time getting bids on certain projects. If you get a higher EMR score, this also implies that you will pay for a higher insurance premium. If your EMR score is above 1.0, you have a debit factor right there.

Calculating your EMR score requires a few things that you need to look into and compute for. To get the right EMR score computation, you need to get your workers’ insurance compensation claims along with your actual insurance. All of these things are reported by the National Council on Compensation Insurance or NCCI. Though they collect this information over a span of 5 years, they often only use the past three years. The use of an EMR worksheet is a must to assess each claim. Many factors are assessed from this worksheet starting with the monetary value and type of incident. The size of your payroll may also affect your EMR rating. Comparing your EMR rating to the industry average score of 1.0 can help you a lot, and anything that is above it will mean that it is high. Comparing your performance yourself can also help you a lot.

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