Experience Modification Rate (EMR)


What is Experience Modification Rate (EMR) ?

Definition of Experience Modification Rate ( EMR ) in Construction
The rating system used by insurance companies, to factor a company’s safety records, and jobsite losses, into the rate to be paid for worker’s compensation insurance.

A company that has a clean record regarding safety, should not be paying the same amount for worker’s compensation insurance, as the company that has several safety violations and losses. The EMR is an important number, and is normally asked in any RFQ ( Request for Qualifications ). The RFQ is a questionnaire developed to enable a contractor to be listed on a projects bidders list. Safety has become an important element within the construction industry, and its importance must be clearly understood by contractors who intend to be selected as bidders on large and exclusive projects. The EMR rating is reviewed by owners, architects, financial institutions, bonding companies and any other entity evaluating contractors and subcontractors.