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Everything You Need to Know About EMR Ratings and Scores

As a company owner, you need to deal with many factors in running your business. In running a company, it is very important that you get the right insurance plans. When there are employees who are working for your company, you need to make sure that you also have proper workers’ compensation insurance. Many states today make it a requirement for companies to have this type of insurance for their company. It has become a requirement because work accidents can happen any time. In association with workers’ compensation insurance, you have to be aware of your EMR rating too. Your EMR rating is crucial to this type of insurance plan. You can view here to learn more about EMR rating, its importance, and how you can lower it. Lowering your EMR rating is vital because it is only then can you get lower premiums for this kind of insurance.

EMR basically stands for 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. The average EMR rating is 1.0. Getting a company EMR rating that is lower than this number implies that your company is in a safer position than most. 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. Your company may not be able to get bids on particular projects with this rating. If you get a higher EMR score, this also implies that you will pay for a higher insurance premium. You will have a debit factor if your EMR rating is above 1.0.

You will know your EMR score with proper calculations. To get the right EMR score computation, you need to get your workers’ insurance compensation claims along with your actual insurance. You will get these reports from the NCCI or National Council on Compensation Insurance. 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. This worksheet looks at various factors like monetary value and type of accident. Your payroll size is another factor that will help determine your EMR score. You may compare your EMR score with the 1.0 industry average, and just remember that anything above this mark is high. You may also compare your rating with your very own performance.

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