There are many different insurance coverages that a general contractor will need to review and analyze for your project: such as builder’s risk insurance and general liability. Work comp insurance is usually the most expensive of the multiple coverages needed for a construction project which is reflected by your EMR (Experience Modification Rating). Most states require contractors to have coverage on their projects in order to protect employees from potential work-related injuries.
This cost of workers’ comp insurance is different for each contractor, based on the level of risk that your insurance firm calculates. This calculation is the measuring stick that insurance firms use to provide coverage to a contractor.
Why is Your EMR Important?
EMR is a critical component when a contractor is competing for work in the construction industry. Some business owners will only work with companies who attain an EMR scores below 1.0. This could be a make or break from gaining a project or losing it.
An EMR greatly impacts insurance premiums. The lower your EMR, the lower the premiums paid on work comp coverage. An EMR that’s below 1.0 will save you money in the long run, especially on insurance premiums.
Ways to Lower Your EMR
The best way to reduce insurance premiums associated with work comp is for you to reduce your EMR. The best way to complete this is by providing a safe work environment for your employees. Here are some ways to ensure a safe work environment.
- Invest in safety technology that will help to track what courses your employees have taken and ensure that they are up-to-date on their training. Training is key to a safe environment.
- Build a safety culture and work towards continuous improvement by reviewing your leading and lagging indicators.
- Track key indicators to focus on continuous improvement. Lagging indicators look at past statistics and data that has previously occurred.
Contact Our Insurance Experts
Ultimately, the goal is to create a safe environment and prevent injuries on the job. The safer that you and your employees perform, the lower your EMR and less expensive your insurance premiums will be.
For more information on this topic, contact your local insurance experts here at IBC Insurance. Give us a call at 712-277-2424 or fill out this form online. We look forward to serving you!