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HelpingCompaniesSaveMoney
ANDProtecttheEnvironment
ReduceEMR–IncreasePROFIT!
2016
August
“…Acompany
witha0.8
EMRwillpay
over30%less
inWorkers’
Compensation
insurancethan
acompany
witha1.2
EMR.”
WhatisEMR?
WhoDeterminesEMR?
In a word – PROFIT! The Experience
Modification Rate (EMR) is a number that
insurance carriers use to determine a
company’srisk.Thehighertherisk,thehigher
the EMR – and Workers’ Compensation
insurance premiums. It is somewhat like our
credithistoryanditfollowsuseverywhere.As
such, it can have either a positive or negative
impactonyourcompany’scostsandprofits.
TheNationalCouncilonCompensationInsurance
(NCCI)istheentityresponsibleforcalculatingthe
Experience Modification Rating for most states.
NCCI’sExperienceModificationRatingconsistsof
two primary elements: Frequency or Primary
Losses and Severity or Secondary Losses. The
criteriaforthesetwoelementshaschanged over
thepastthreeyearsaslistedbelow:
The Experience Modification Rate is based on
yourcompany’slosshistoryascomparedtoits
industry average. If your company has fewer
claims, itsEMRwillbe lower,moreclaims and
itwillbehigher.
Thebaselineis1.0,butitcanrangewellabove
or belowthisvalue. Though the formula used
to determine this value is not exactly simple,
what is most important is how it affects your
profitabilityandbottomline!
Witheachincreaseinacompany’sEMRcomes
an increase in its Workers’ Compensation
insurance.Butyoudon’thavetoacceptahigh
EMR.Thisreportprovidesavarietyofwaysto
lowerBOTHyourcompany’sEMRandWorkers’
Compensationpremiums.
2013
•
•
FrequencyorPrimaryLosses:Claimless
than$10,000
SeverityorSecondaryLosses:Claim
greaterthan$10,000
2014
•
•
FrequencyorPrimaryLosses:Claimless
than$13,500
SeverityorSecondaryLosses:Claim
greaterthan$13,500
2015
•
•
FrequencyorPrimaryLosses:Claimless
than$15,000
SeverityorSecondaryLosses:Claim
greaterthan$15,000
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HelpingCompaniesSaveMoney
ANDProtecttheEnvironment
HowToLowerEMR?
2016
August
The good news is that you CAN lower your
company’sEMR.Itbeginswitheffectivesafety
practices and programs that are directly
focused on preventing injuries. It is inevitable
thataccidentswillhappen.However,thereare
manypreventableaccidentsthatoccurandget
reportedthatincreaseclaims,losses,EMR,and
Workers’Compensationcosts.
4. Inspections & Audits – A site audit or
inspectionistheonlywaytoknowifworkersand
workplaces are operating under safe conditions.
The main purpose is to discover hazards at a
jobsite and correct them BEFORE they cause an
accidentorinjury.Inspectionscanbescheduledor
performed impromptu and should include a
checklist.
Thiscanbeavoided.How?
5.ReportingProcess–Establishathoroughand
consistent process to report, record, track, and
respond to incidents that identify the hazard.
Streamline and centralize the incident reporting
processforspeedandaccuracyindocumentation
and correction. It is also beneficial to provide a
system for employees to easily report work site
hazards.
By developing and implementing a
comprehensive safety program that is thefirst
line of defense in preventing accidents. A
company’spreparednessandresponsivenessin
proactively
preventing
accidents
and
effectivelymanagingclaimsisthebestmethod
tocontrolandloweritsEMR.
“Companies
canreduce
theirEMR
throughan
effective
safety
program…
leadingtoan
increasein
productivity,
profitability&
competitive
advantageto
winmorenew
business.”
6. Investigation & Correction – Thorough
Below are a six (6) simple and effective safety investigationofaccidentsisrequiredtodetermine
practices to help improve your company’s root cause. The investigation process enables
corrective measures/actions to be implemented
safetypracticesandprogramperformance.
thatpreventsameincidentsfromoccurringinthe
1.WrittenSafetyProgram–Awrittensafety future.Alwayskeeppreventioninmindtocorrect
program is the foundation of any successful thehazardcausingtheaccidentinthefirstplace.
safety program. It should stress that working
safely is as important as any other business CostSavings
function.Awrittenprogramwillidentifywhat
must be done to control and mitigate hazards A company’s EMR has a direct impact on its
and promote greater safety awareness across operating costs – specifically in the amount of
Workers’ Compensation premiums. This cost is
theorganization.
easilyquantifiedthroughthefollowingexample.
2. Education& Training–An effectivesafety
training program is essential in keeping the A company withan EMRof1.29(0.29 abovethe
workforceuptodateonkeyandcurrentsafety 1.0 industry standard) would mean the employer
topics. Itisimportantto presentmaterial in a hastopayanextra$0.29perdollarofpremiums.
clearandcomprehensivemanner.Asimportant If premiums are $100,000 annually, then the
is for employees to demonstrate they employerjustlost$29,000offthebottomlinedue
understood and retained the knowledge toitshigherinjuryrate.
throughtestingorquizzes.
On the flip side, if a company has fewer injuries
3.HazardAssessment–Conductingthorough and an EMR of 0.71 (0.29 below the 1.0 industry
hazard assessments (JHA/JSA) helps identify standard) it would receive a premium credit.
where the hazards are located. These hazards Consideringthesame$100,000 annual premium,
may change due to the everyday change of a the company would now save $29,000 – which
jobsite, thus frequent assessments should be directlycontributestoitsbottomline.Inaddition,
conducted. Once hazards are identified, these savings can help increase competitiveness
controls must be put in place to correct or whenbiddingnewbusinessbynothavingtocarry
thisunnecessaryoperatingcost.
mitigatethehazard.
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HelpingCompaniesSaveMoney
ANDProtecttheEnvironment
Summary
2016
August
AboutPetroVACEco-FriendlyAbsorbent
The most important factor and benefit from a
low EMR is the reduction or elimination of
worker accidents and injuries. This translates
directly into lower operating costs and higher
profitability.
PetroVAC isa100%organicand environmentally
safeandfriendlyoil,fuel,andchemicalabsorbent
that will cleanup more than 70 types of toxic
substances on water and wet/dry surfaces. Its
superior absorption rate and capacity will
REDUCE usage, waste, cleanup time and labor,
ItisafactthatacompanywithanEMRbelow anddisposalcost.
1.0 is saving money every day on every
employee through an effective safety PetroVACbenefits:
program. The results can help eliminate
injuries, lower claims and losses, and reduce
§ 100%Organic
Workers’ Compensation insurance. Additional
§ EnvironmentallyFriendly
value is achieved through competitive
§ Non-Toxic&Non-Carcinogenic
advantage when bidding on new business –
§ DirectWaterCleanup
ANDretainingexistingbusiness.Nothavingto
§ Wet/DrySurfaceCleanup
passalonghigheroperatingcostsintheformof
§ LandfillFriendly
uncompetitive bids is a sound strategy for
§ NoMessyCleanup
winningmorenewbusiness.
§ ReducesUsage&Waste
§ ReducesDisposalCost
To sum it up and taking liberty with an old
adage, “An ounce of prevention is worth a PetroVAC is the most effective, economical, and
poundofCASH!”Fromtheboardroomtothe environmentallyfriendlyabsorbent availablethat
frontline,everyonewinswhenaninvestmentin saves time and money across all areas of spill
safetysavesbothdollarsandlives.
management.
PETROVAC,LLC
6175HickoryFlatHwy,Suite110-375
Canton,GA30115
TELEPHONE
Office:(404)850-1212
Fax:(844)710-4925
WEBSITE&EMAIL
www.petro-vac.com
[email protected]