Question 1

What is a good EMR?

Accepted Answer

An EMR of 1.0 is the industry average for your class of work. Below 1.0 means fewer losses than expected and a premium discount; above 1.0 means more losses and a surcharge. Many general contractors will not let you bid with an EMR above 1.0, so 0.80 to 0.90 is a strong, competitive position.

Question 2

How is EMR actually calculated?

Accepted Answer

Your rating bureau (NCCI in most states, or a state bureau) compares your actual claim losses over a three-year window to the losses expected for your payroll and class codes, adjusted by a D-ratio that weights claim frequency over severity. It is set by the bureau, not by you, which is why this tool estimates the cost impact rather than recomputing the rate itself.

Question 3

How do I lower my EMR?

Accepted Answer

Reduce both the frequency and the cost of claims: prevent injuries with a real safety program and training, report and manage claims quickly, and use return-to-work light duty so a claim becomes restricted-duty rather than an expensive lost-time case. Frequency hurts your EMR more than a single large claim, so stopping the small repeat injuries matters most.

Question 4

Why does EMR affect whether I can bid?

Accepted Answer

General contractors and prequal portals use EMR as a fast proxy for how safely you run your crews. A contractor with an EMR of 1.4 is statistically more likely to have an incident on their site, so many owners set a hard cap (often 1.0) as a condition of bidding, regardless of price.

EMR impact calculator

How to actually lower your EMR

The EMR fix starts with a safety program