The Complexities of EMR Calculation: How Safety Affects Your Business Costs

Calculating the EMR involves a mix of various elements – from NCCI classification code rates and expected losses to industry averages. It's a sophisticated process, reflecting your company's safety record in comparison to others in the industry. Essentially, your EMR gives insurers a quantified view of your company's risk level in terms of workplace safety and injury history.

The Direct Link Between Workplace Injuries, EMR, and Insurance Premiums

The direct consequence of workplace injuries on your EMR – and subsequently on your insurance premiums – can be significant. Insurance experts emphasize that even a modest increase in the EMR, say from 1 to 1.2 (a 0.2 increase), can lead to a whopping 20% hike in your annual workers' compensation premiums. This increase highlights the critical nature of maintaining a robust workplace safety program and mitigating injuries effectively. Not only do these efforts safeguard your employees, but they also have a direct, beneficial impact on your business's financial health.