The Experience Modification Rate (EMR) is a measure of what aspect of a contractor?

The Experience Modification Rate (EMR) is a key metric used to assess a contractor's past safety performance. Specifically, it is calculated based on the contractor's historical workers' compensation claims and losses relative to the industry's average. A lower EMR indicates a better safety record and fewer claims, which can lead to lower insurance premiums. Conversely, a higher EMR suggests more frequent or severe claims, which can result in increased costs for insurance.

EMR is particularly important as it directly impacts a contractor's liability insurance costs and eligibility for certain contracts, especially with larger firms or government projects that may require a minimum EMR for bid consideration. Thus, it serves as a significant determinant of a company's safety culture and operational practices over time.