Branham Electric is pleased to announce our 2022 Experience Mod is .83. This rating verifies “Safety First” is more than a motto at Branham Electric. It’s top priority in everything we do.
As electrical contractors, we’re required to carry a variety of insurance coverages. General liability, automotive, and workers’ compensation are our main three. Workers’ compensation is regarded, by many, as the most expensive coverage. St. Louis area cities and counties require us to show proof of insurance, including work comp, prior to issuing their electrical license and permits. Our general contractors (GC) also require proof of insurance prior to signing contracts, allowing our electrical crews on their jobsites, and releasing payment(s) for work completed.
Workers’ compensation cost differs from contractor to contractor. Premium cost is based on the level of risk a contractor’s past work history generates. This risk factor is known as EMR, or experience modification (mod) rating. It’s become the “measuring stick” insurance companies use to determine a specific contractor’s annual workers’ compensation premium.
What is an Experience Modification Rating (EMR)? – EMR is a calculation used by insurance agencies to determine a contractor’s annual workers’ compensation premium. This rating reflects a variety of lagging indicators, such as claims history, loss history and injury cost.
EMR enables an insurance company to recognize the differences among qualifying employers/contractors with respect to safety and loss prevention. “It does this by comparing the experience of individual employers with the average employer in the same classifications, or trade. These differences are reflected by an experience modification rating, based on employer payroll and loss records.” Annual changes in a contractor’s EMR generate an increase, decrease, or no change in the contractor’s annual work comp premium. NCCI – ABCs of Experience Rating
What is a good EMR? – The average EMR is 1.0, which means a contactor is found to be no more or less risky than the majority of other similar trade contractors. Typically, a rating under 1.0 is consider good, or relatively safe. If a contractor’s rating is above 1.0, it’s considered bad, or riskier.
Branham Electric’s 2022 experience mod is .83 which means we are 17% less risky, or safer, than the majority of other electrical contractors. Currently, St. Louis County has just over 600 licensed electrical contractors. Branham Electric’s .83 experience mod tell our builders, developers, and the general public that our crews work safer, and are less risky, than 102 other St. Louis County electrical contractors.
How is an EMR Calculated? – A contractor’s EMR is based on real information and actual insurance claim history. All contractor claims are reported to the NCCI (National Council on Compensation Insurance). Claims reported in the past 5 years are considered. However, insurance companies only examine the past 3 years of claims. The NCCI utilizes a nationally accepted EMR formula provided by Optimum Safety Management and generate a contractor’s EMR on an annual basis. An EMR formula may also reflect state codes and regulations. Insurance agencies may add additional requirements to generate a more accurate assessment.
Why do Contractor’s Experience Modification Rating Matter? – Many general contractors, and large project developers, have EMR standards and will only work with contractors whose EMR is below 1.0. Branham Electric’s GGs always want to know our current EMR score prior to negotiating large multi-family new construction contracts.
Plus, our EMR impacts our annual workers’ compensation premium. The lower our EMR, the lower our annual premium cost―And, the end result is, lower service rates for our customers.
Click here to learn more about Branham Electric’s safety program.