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The Importance of EMR and How It Benefits Our Customers




EMR, also known as "Experience Modification Rate" or "Experience Modifier Rating," is a crucial metric for workplace safety, including the cost of workers' compensation premiums. A good EMR indicates that we maintain a safe workplace for our customers and reduces our insurance premiums, while a poor EMR can have the opposite effect.


So what is an EMR rating? This post will cover everything you need to know about EMR ratings and why Unity Power Service constantly strives to improve our rating.


Why is a good EMR rating crucial?

Think of an EMR as a credit score for your business. EMR may be measured in single digits, whereas a credit score is three, but the principles are similar in that owners use EMR to gauge "risk." Instead of calculating an individual's financial responsibility, owners use EMR to assess "risk" and evaluate safety on the job.


The average EMR is 1.0, meaning no firm is more or less dangerous than another. A rating of 1.0 is considered to be "good" or safe. If your EMR exceeds 1.0, you can assume your company's safety is "below average." Any value below 1.0 is deemed "above-average" in terms of safety.


At Unity Power Services, our audited 2022 EMR has dropped from .99 to .97. This is a testament to our daily focus and diligence on the importance of SAFETY, one of our core values. It's integral to how we run our business, and we're proud of the entire team for their continued efforts!

It's crucial to have a good EMR for these reasons:

  1. It is required that we present our EMR when bidding on work. Clients and partners will want to see it to determine how serious we are about safety and how safe we consider ourselves. Contractors must meet EMR standards to be hired to work on projects. Like being denied a loan due to a low credit score, we could lose out on work if our EMR falls below average.

  2. We may have difficulty finding skilled tradespeople. Potential team members don't want to work with just any company; they want to be employed by a company that takes its employees' safety seriously. There is a need for more skilled workers in the trades, so they have a choice as to which firms they work for. Many people will choose a company with a lower EMR, as they feel the firm is more committed to their employees' safety.

  3. A poor EMR can cost our company (literally). As noted previously, EMR is also contingent on insurance costs. The higher the EMR, the more we pay in insurance premiums. For example, a company with an EMR of 1.0 will pay 20% less on premiums than one with an EMR of 1.2. This also helps us remain cost competitive in our pricing for our customers.


How is EMR calculated?

EMR is calculated using the data your company reports to NCCI (National Council on Compensation Insurance) and the data all other firms in the industry report to this entity. The EMR is typically calculated based on the data reported by your firm over the last five years. However, only the three previous years are considered when determining the EMR.


How do we boost our EMR?

A good EMR saves you money on insurance and helps us qualify for top-tier electrical projects. Here are some safety measures we implement on the worksite:

  • Safety is one of our core values. It is paramount on any project, no matter the size. We will never choose profits over life or property safety. In a high-risk industry like electrical contracting, there is always a chance of incidents. However, we reduce the risk of incidents by committing ourselves to continuous improvement in our safety program and ensuring our team members receive regular training. We use any near-misses and incidents as learning opportunities with your team. In addition, we have morning safety huddles that include content relevant to the activities on site.

  • We adopt safety technology to protect workers and help prevent emergencies on the job site. Fully embracing safety technologies makes a critical difference in the long run.

  • We practice our site emergency action plan. In an emergency, the last thing we want at a job site is a chaotic situation where one incident turns into several. Establishing and practicing our site-specific emergency action plan is crucial. We suggest doing it at least twice a year.


Partner with Unity Power Services

As a provider of top-tier electrical services committed to job site safety, our EMR is better than average and something we continually strive to improve. At Unity Power Services, we pride ourselves on our high level of care and look forward to serving you with the best commercial electrical installation and maintenance services.

To learn more about how we can serve you, submit a contact form or call us at 571-577-0688. We look forward to serving you.


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