US Compliance Corp Shares Importance of Experience Modification Rate and Workers Comp Claims

June 25, 2015 - PRLog -- Experience Modification Rate (EMR) is a number used by insurance companies to gauge both past cost of injuries and future chances of risk. The lower the EMR, the lower worker compensation insurance premiums. An EMR of 1.0 is considered the industry average. An EMR greater than 1.0 means there has been a worker's compensation claim that an insurance provider paid. To mitigate the insurance company's risk, worker's compensation premiums increase and the increased EMR sticks with manufacturer for three years.

Experience Modification Rates are calculated by dividing a company's payroll in a given job classification by 100, and then by a 'class rate' determined by the National Council on Compensation Insurance (NCCI) that reflects the inherent risk in that job classification.

Secondly, a comparison is made of past claims history to those of similar companies in a specific industry. A higher-than-normal rate of injuries in the past, assumes a continued higher rate. NCCI has developed a complicated formula that considers the ratio between expected losses in a manufacturer's industry versus what actually occurred, as well as both the frequency of losses, and the severity of those losses.

About U.S. Compliance Corp

Privately held manufacturing firms must attain and sustain environmental, health, and safety compliance. Manufacturers rely heavily on employees to make the business productive and profitable. Lost workdays due to sickness or injury quickly diminish profits; employees want to know manufacturers care about their health and safety. U.S. Compliance Corp helps manufacturers avoid non-compliance lawsuits and fines by partnering and creating a customized program, practical to implement, easy to follow, and preventing workers’ comp claims or costly citations.

Manufacturers with $25M-$250M in annual revenue have the same requirements to keep up with the latest government regulations. U.S. Compliance Corp has over 25 years of experience keeping more than 1,000 customers across the U.S. and Canada compliant with OSHA and environmental laws.  Manufacturers must keep innovating, making better and dynamic products, while U.S. Compliance Corp keeps track of the changing regulations.  Outsourcing this vital function to experts ensures manufacturers stay on top of the requirements and provide implementation and documentation of safety and compliance programs.

U.S. Compliance Corp (www.uscompliance.com/smartcompliance) offers Compliance Fundamentals services providing valuable, on-going compliance support for OSHA and/or Environmental regulations. Highly qualified specialists work at clients’ manufacturing facilities and lead employees in interactive compliance trainings. On-site employee trainings are scheduled to evaluate manufacturing plant sites and complete the necessary OSHA and environmental reports. Follow U.S. Compliance Corp on Twitter at @US_Compliance; contact U.S. Compliance Corp at (888) 897-8681.

U.S. Compliance Corporation

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Scott Stevenson

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PR@uscompliance.com

888-897-8681