EMRs, or Experience Modification Rates, are provided by insurance companies and used by the Occupational Health & Safety Administration to evaluate safety standards in the workplace, according to the U.S. Department of Labor website. Most companies have an EMR of 1.0, according to the Safety Management Group.
The EMR goes up if an employee files a successful worker compensation claim with the company's insurance company, according to the Safety Management Group. A higher EMR translates to more expensive insurance premiums. Some businesses try to pass off the extra cost to the customer, while others simply go bankrupt. OSHA uses EMR as one tool to evaluate a company's safety performance and help businesses improve safety standards, lower insurance costs, save money and stay out of bankruptcy.