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 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.
