What is Experience Modification Rate (EMR)?

What Is EMR in Construction? A Guide to Experience Modification Rate

Experience Modification Rate (EMR), sometimes called mod rate or experience mod, is a number insurance carriers use to price a contractor’s workers’ compensation premiums. It compares your company’s recent injury and claims history to others like you.

• EMR = 1.00 means you are exactly average for your class of work.
• Below 1.00 means better than average safety and lower premiums.
• Above 1.00 means higher risk and higher premiums.

Most contractors first hear about EMR when they are prequalified for bids or renewing insurance. Owners and GCs often set EMR thresholds to manage risk on their projects, so your mod can affect both cost and competitiveness.

Why EMR Matters to Contractors

• Direct cost: EMR is a multiplier applied to your workers’ comp premium. A lower EMR can save six figures annually for mid- to large-size contractors.
• Bid eligibility: Many owners and primes require EMR ≤ 1.00, sometimes ≤ 0.90.
• Reputation and trust: A low mod signals strong safety culture and reliable project execution.
• Cash flow and growth: Lower premiums free up capital for hiring, equipment, and expansion.

How EMR Is Calculated, At a High Level

EMR is calculated by rating bureaus such as NCCI or state agencies. The basic idea is simple even if the math is not:

• They look at a three-year window of your past workers’ comp losses, skipping the most recent policy year.
• Your actual losses are compared to expected losses for companies with similar payroll and class codes.
• Frequency of incidents matters more than one rare, large loss. The formula gives greater weight to smaller, more common claims because they are seen as a signal of day-to-day risk.

You typically receive an EMR worksheet before the mod effective date. Review it carefully to catch payroll misclassifications or claims that should be closed or adjusted.

What Impacts Your EMR

• Injury frequency: Multiple small claims drive EMR up quickly.
• Injury severity: Large losses still matter, but frequency is often the bigger driver.
• Return-to-work and claims management: Faster, well-managed returns reduce costs and the time claims stay open.
• Accurate payroll and class codes: Misclassified work inflates expected risk.
• Subcontractor controls: Poor sub safety can flow to your record through claims or lost time on your projects.
• High-exposure tasks: Electrical contact, energized work near panels, MCCs, and switchgear can lead to recordable injuries that move the needle on EMR.

How to Lower EMR with Practical Safety Improvements

• Build a near-miss program that people actually use, then act on the patterns.
• Standardize LOTO, energized work permits, and point-of-use verification.
• Invest in training that sticks: brief refreshers, toolbox talks, task-based microlearning.
• Tighten claims management and return-to-work procedures.
• Add engineering and technology controls that prevent the incident in the first place.

Prevent Electrical Contact Incidents Before They Become Claims

Electrical contact is a persistent cause of jobsite injuries and lost time. Many of the workers affected are not full-time electricians, which increases the risk of assumptions about de-energization during maintenance or troubleshooting. Fewer electrical contact incidents means fewer recordables and fewer claims feeding your EMR.

Proxxi Band is a wearable voltage detector that adds a proactive layer of protection:

• Real-time alerts: Haptic, audible, and visual warnings when live voltage is present.
• Always on: A passive, second set of eyes that does not slow down the task.
• Works with what you already do: Complements LOTO and PPE, it does not replace them.
• Data and dashboards: Usage and alert insights help safety leaders target training, validate adoption, and identify hot spots where near misses concentrate.
  

EMR Benefits Contractors Can Realistically Expect with Proxxi

• Incident prevention: Cut the frequency of electrical contact events that become medical-only or lost-time claims.
• Better loss profiles: Fewer small claims and first-aid escalations support a lower mod over the coming rating cycles.
• Bid readiness: A stronger safety story, backed by data and an award-winning control, supports prequalification.
• Culture and confidence: Crews feel protected and are more likely to speak up about hazards when they know leadership invests in prevention.
  

Simple Implementation Plan

1. Identify high-exposure tasks: Panels, MCC doors, switchgear rooms, troubleshooting, start-ups, shutdowns.
2. Equip the right roles: Electricians, maintenance techs, service crews, and non-electrical trades that work near energized equipment.
3. Set expectations: Treat Proxxi like seat belts, on whenever you are near electrical gear.
4. Use the data: Review alerts, muted time, and settings to coach teams and refine procedures.
5. Close the loop: Tie lessons learned back into toolbox talks and job hazard analyses.

Frequently Asked Questions

Is EMR only about big injuries? No. Frequency of small, preventable claims can raise your EMR as much as one infrequent large loss.

How fast can EMR improve? EMR reflects a rolling three-year history, so improvements compound over time. Start now to influence the next rating cycle.

Does Proxxi replace LOTO or PPE? No. Proxxi adds proactive awareness. It complements LOTO, PPE, and verification tools to prevent contact in the first place.

Will crews actually wear it? Proxxi is designed for the field. It is simple to use, always on, and provides immediate feedback without extra steps.

Talk to an Expert About Lowering EMR with Proxxi

Ready to reduce electrical contact incidents and strengthen your mod over time? Talk to a Proxxi expert to see how wearable voltage detection fits your safety program and bid strategy.