EMR performance is one of those topics where contractors carry around half-understood information that leads to bad decisions. A project manager "knows" that EMR matters for bidding but cannot explain why a 0.85 is better than a 0.95 beyond a vague sense that lower is better. A safety director "knows" that claims affect EMR but cannot quantify which claims matter most or for how long.

This FAQ addresses the questions contractors actually ask when they dig into EMR performance. No jargon without explanation. No oversimplifications that fall apart under scrutiny.

What Is Considered a Good EMR?

"Good" depends on context, but here are the benchmarks the construction industry uses.

An EMR of 1.0 is definitionally average. It means your loss history matches what NCCI expects for a company of your size and classification. Average is not aspirational.

An EMR between 0.85 and 0.99 indicates better-than-average safety performance. Most general contractors will prequalify subcontractors in this range without additional scrutiny.

An EMR between 0.70 and 0.84 is considered strong. Contractors in this range typically have robust safety programs, effective claims management, and consistent modified-duty programs. This range opens doors to safety-sensitive projects in industrial, petrochemical, and healthcare sectors.

An EMR below 0.70 is exceptional. It indicates a sustained commitment to safety across multiple years with minimal claims activity. Fewer than 15% of construction companies maintain EMRs below 0.70.

An EMR above 1.0 signals worse-than-average losses. Many GC prequalification programs reject subs with EMRs above 1.0 automatically. Some allow subs up to 1.10 or 1.15 with enhanced safety plan review and project-specific safety supervision.

An EMR above 1.25 is a serious red flag. It indicates substantial loss history that translates into higher workers' comp premiums, limited bidding eligibility, and increased project risk.

EMR Range	Industry Interpretation	Bidding Eligibility
Below 0.70	Exceptional	All projects
0.70 - 0.84	Strong	All projects including safety-sensitive
0.85 - 0.99	Better than average	Most projects
1.0	Industry average	Some GCs accept, many do not
1.01 - 1.15	Below average	Limited, may require waivers
1.16 - 1.25	Poor	Significantly restricted
Above 1.25	Serious concern	Most GCs disqualify

How Long Do Claims Affect EMR Performance?

A workers' compensation claim affects your EMR for exactly three rating years. But the timeline is not always intuitive.

The NCCI experience period covers three completed policy years, excluding the most recent year. Here is an example timeline for a claim occurring in March 2024 on a January-to-January policy:

2024 (policy year of occurrence): Claim occurs. Not yet in any EMR calculation because this is the most recent year.
2025 EMR (effective January 2025): Still excluded. The 2024 policy year is the most recent completed year and NCCI excludes it.
2026 EMR (effective January 2026): The 2024 policy year enters the experience period as Year 3. Claim now affects EMR.
2027 EMR: Claim is in Year 2 of experience period. Still affecting EMR.
2028 EMR: Claim is in Year 1 of experience period. Still affecting EMR.
2029 EMR: The 2024 policy year has dropped out of the experience period. Claim no longer affects EMR.

Total impact window: approximately 4 to 5 years from the date of injury to the date the claim exits the calculation. This is why EMR responds slowly to both improvement and deterioration.

Can You Appeal Your EMR?

You cannot appeal the formula itself, but you can challenge the data inputs. There are three pathways.

Data corrections through NCCI. If your experience rating worksheet contains errors (wrong claims, incorrect payroll, misapplied class codes), your broker files a formal correction request with NCCI. Corrections supported by documentation from your carrier are typically processed within 30-60 days. A revised worksheet and modification rate are issued.

Contingent rating relief. Some states offer a formal appeal process for EMRs that are disproportionately affected by a single catastrophic claim. The specifics vary by state, but the general concept allows the rating bureau to cap the impact of unusually large individual claims on small employers.

Carrier dispute resolution. If the issue is with claim valuations or reserves rather than NCCI data, the path runs through your insurance carrier. Request a claim file review, challenge reserve levels, and push for accurate loss valuations. Any reduction in incurred losses flows into a recalculated EMR at the next valuation date.

Does EMR Affect Bidding Eligibility?

Directly and substantially. Here is how it plays out across different project sectors.

Public works projects. Many state and federal agencies include EMR requirements in their solicitation documents. The U.S. Army Corps of Engineers, General Services Administration, and numerous state departments of transportation require EMR documentation as part of contractor qualification.

Private commercial construction. General contractors set their own prequalification standards, and EMR thresholds are nearly universal among top-100 ENR contractors. A sub that cannot meet the GC's EMR requirement simply does not make the bid list.

Safety prequalification platforms. Systems like ISNetworld, Avetta, and BROWZ collect EMR data as part of their safety scoring. Owners who use these platforms set minimum thresholds, and contractors who exceed them are flagged as non-compliant and barred from the project.

Bonding capacity. Surety companies evaluate EMR as part of their underwriting. A rising EMR signals increasing loss exposure, which can lead to reduced bonding limits or increased collateral requirements. A contractor who cannot get bonded cannot bid bonded work.

Bidding Impact	EMR Below 0.85	EMR 0.85-1.0	EMR Above 1.0
Federal projects	Fully eligible	Typically eligible	May require review
State DOT work	Fully eligible	Typically eligible	Often disqualified
Large commercial GCs	Preferred	Accepted	Usually disqualified
Industrial/petrochemical	Accepted	Case-by-case	Disqualified
Bonding capacity	No impact	Minimal impact	May reduce limits

How Does EMR Relate to Insurance Premiums?

The relationship is a straight multiplication. Your workers' compensation premium is calculated as:

Manual Premium x EMR = Modified Premium

Manual premium is determined by your payroll in each class code multiplied by the published rate. The EMR then adjusts that premium up or down.

For a concrete contractor with $400,000 in manual premium:

EMR of 0.80: Modified premium = $320,000 (saving $80,000)
EMR of 1.0: Modified premium = $400,000 (baseline)
EMR of 1.20: Modified premium = $480,000 (paying $80,000 extra)

The annual difference between a 0.80 and a 1.20 EMR on $400,000 of manual premium is $160,000. Over three years, that compounds to $480,000. That figure alone justifies significant investment in safety programs, claims management, and EMR review processes.

Premium impact scales linearly with company size. A small electrical contractor with $50,000 in manual premium sees a $5,000 impact per 0.10 EMR change. A large general contractor with $2M in manual premium sees a $200,000 impact per 0.10 change.

What If You Are a New Company Without EMR History?

New companies without sufficient experience data to generate an EMR face a unique situation. NCCI requires a minimum premium volume (typically two to three years of workers' compensation history) before issuing a modification rate.

During the interim period, new companies are rated at 1.0 by default. They pay the manual rate for their classification without any experience adjustment. This is neither a benefit nor a penalty, it is simply the absence of enough data to calculate a credible modifier.

Implications for prequalification. GCs that require EMR documentation must accommodate new businesses. Some use alternative evaluation criteria: enhanced safety plan review, owner experience history (if the principals ran a previous company with a trackable EMR), third-party safety audits, and higher project safety staffing requirements.

Building an EMR quickly. New companies should focus on claims prevention from day one, knowing that their first three years of loss data will determine their initial EMR and their competitive position for years to come. A new company with zero claims in its first three years will enter the system with a strong EMR, often between 0.70 and 0.85 depending on size and classification.

Implications for the EMR itself. Because new companies tend to be small, their initial EMR calculation will be heavily influenced by the ballast value, which pulls them toward 1.0 regardless of actual experience. As the company grows, the formula gives more weight to actual experience and the modifier becomes more responsive to real performance.

Additional Common Questions

Does my EMR follow me if I change insurance carriers? Yes. EMR is calculated by NCCI (or the state rating bureau), not by your insurance carrier. It is tied to your Federal Employer Identification Number (FEIN), not your policy number. Switching carriers does not reset or change your EMR.

Can I have different EMRs in different states? If you operate in states covered by NCCI, you will have a single interstate EMR based on your combined experience across all NCCI states. If you also operate in independent bureau states (like California, New York, or Pennsylvania), those states calculate separate intrastate EMRs using their own formulas.

Does EMR consider only employees or also temps and day laborers? EMR reflects the workers' compensation claims and payroll on your policy. Temporary workers supplied by a staffing agency are typically covered under the agency's policy and affect the agency's EMR, not yours. Day laborers without their own coverage who are not provided through a staffing agency may be added to your policy, in which case their claims do affect your EMR.

What is the highest possible EMR? There is no fixed maximum. Very small companies with severe loss histories can see EMRs above 3.0, though this is rare. The practical ceiling depends on company size, classification, and loss severity. Companies with extremely high EMRs often find it difficult to obtain coverage at any price.

How does an OSHA citation relate to EMR? OSHA citations and EMR are calculated through completely separate systems. An OSHA citation does not directly change your EMR. However, the workplace conditions that trigger citations often also produce injuries. A pattern of OSHA violations typically correlates with higher claims frequency, which will eventually drive the EMR upward.

If I buy another company, do I inherit their EMR? Generally yes. When an entity is acquired and the employees continue performing the same work, NCCI will combine the acquired entity's experience with the parent company's experience. This can significantly change the acquirer's EMR. Due diligence on EMR before closing an acquisition is essential.

Track EMR performance across every sub on every project. Request a demo to see how SubcontractorAudit automates EMR collection and gives you real-time visibility into subcontractor safety risk.