What it means
EMR is a number a workers' compensation insurer or rating bureau assigns to a company. It compares your claims history to the claims of similar companies in your trade.
A rating above the baseline of 1.0 generally means your history is worse than similar companies. A rating below 1.0 generally means it's better. The insurer applies the rating to your premium.
The exact calculation is set by the rating bureau that covers your state. Ask your broker or insurer how yours is figured and which policy years it uses.
Why it matters
Your EMR affects what you pay for workers' comp, and it also affects what work you can bid. Many owners and prime contractors set a limit and won't let a contractor above it on site.
What it looks like on a site
- The owner or safety lead asks the broker for the current EMR letter before bidding.
- A prequalification form asks for your EMR for the last few policy years.
- After a serious claim, the lead asks the broker how it will show up in the rating.
- Claims are reviewed with the insurer, so the dates, notes and photos on file are complete.
This is general information, not legal advice. Check the current rule and your own procedures. Back to the glossary