ClickCease

EMR Letter for ISNetworld® & Other Safety Certifications

An EMR or E-Mod letter is a document that details your EMR or Experience Modification Rating. This is a rating that determines your workers’ compensation insurance premium. While an EMR rating only technically affects the price of your insurance premium, it also communicates the safety of your workplace in comparison to other companies in your industry. The average EMR rating is 1.0. Any number higher than 1 indicates a higher than average premium (and therefore higher than average rate of workplace incidents), while any number lower than 1 indicates a lower than average premium (and therefore a lower than average rate of workplace incidents).

When will I need an EMR letter?

If you are a contractor seeking employment with a larger contracting company, a hiring client, the government, or any other official entity, you will likely be asked for your EMR letter during the qualification period after bidding on a job. Hiring organizations use EMR letters as an unbiased means of judging company safety.

They often look to EMR letters to determine who is fit to hire as a subcontractor. Needless to say, hiring entities only want to work with contractors with low rates of workplace injuries. If you have an EMR rating over 1, then you need to strategize and implement safety protocols to reduce your rating and increase your chances of securing contracts.

What Are RAVS Safety Progra

How do I obtain an EMR letter?

EMR-letter

When a hiring entity asks for your company EMR letter, they will either accept a letter from your insurance agent or a copy of your EMR worksheet from your insurance advisory organization (NCCI or state-specific).

If your company is already experience rated, then simply contact your insurance agent for an up-to-date copy of your EMR letter. 

If you are a contractor and this is your first time hearing about EMR letters, you likely are not yet experience rated. To become experience rated, you must submit your information to an Advisory Organization (previously known as a Rating Bureau). Advisory Organizations can vary from state to state. The NCCI, the National Council on Compensation Insurance, is the most popular Advisory Organization. The NCCI provides worker’s compensation advisory services to 33 states. If your company is in California, Delaware, Indiana, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Carolina, North Dakota, Ohio, Pennsylvania, Texas, Washington State, Wisconsin, or Wyoming, you will need to file directly through your state insurance rating organization. 

Additionally, there are some contractors that do not qualify for an EMR. If you are a small company, or if your company has existed for less than three years, it may not be statistically possible to calculate your EMR. Some companies also cannot qualify for an EMR because their premium is too low. In these cases, you will provide a letter explaining your circumstances to your hiring client.

Conclusion

Being aware of your EMR rating and having access to your current EMR letter largely affects your likelihood of securing contracts. If you are unsure whether or not you have been EMR rated, contact your insurance agent or state Advisory Organization to learn more. Be proactive and determine your EMR rating before being requested to do so by potential clients – this will save you time in all future hiring processes.