The EMR is determined via a standard formula that considers company size, company class codes and the cost, frequency and duration of prior claims. Class codes associate the company with similar companies within an industry. Class codes come from the NCCI, if the company is within one of the 39 states that use the NCCI standards.
The baseline EMR is 1.0, but EMRs of .75 to 1.25 are common. An EMR above 1.0 or higher means your company has above-average risk compared to similar companies, which translates to a higher workers' compensation insurance premium. A lower EMR indicates below-average risk and a lower than average premium.
You do have some control over your EMR and the premiums you'll pay and the key is in understanding what impacts the EMR and how.
Below are several primary factors that will strongly impact the EMR :
Below are two primary ways to reduce the EMR:
When it comes to building a safer workplace, there are several steps you may take to manage risks and reduce incidents.
EHS software suites help identify and eliminate risks in the workplace (e.g. observations and inspections), track incidents (e.g. near miss, hazardous conditions, property damage, first aid, illness, and injuries) and improve safety processes and procedures (e.g. corrective actions). These activities performed successfully overtime inherently lead to improved EMR results.
OSHA requires training across workplaces to ensure employees know how to do their jobs safely, which includes how to inspect and use equipment and PPE safely.
"Many OSHA standards, which have prevented countless workplace tragedies, include explicit safety and health training requirements to ensure that workers have the required skills and knowledge to safely do their work. These requirements reflect OSHA's belief that training is an essential part of every employer's safety and health program for protecting workers from injuries and illnesses."
Thoroughly trained employees are less likely to make the mistakes that lead to injury. Providing ongoing training is also an indication that your organization values safety and expects employees to follow procedures. Online training makes it easy for employees to learn at their own pace and review best practices and procedures whenever and wherever to refresh their knowledge.
E-learning software benefits:
By insisting on safety inspections, observations, incident management, corrective actions, safety meetings and safety training you're well on the way to creating a culture of safety and reducing incidents within your organization. Fewer incidents mean less missed work and fewer workers' comp claims—which reduces your EMR.
Take steps to reduce your EMR. Contact us for more information about safety management software.
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