Your experience modification rate (EMR) is the single most influential factor in determining your workers' compensation premium, and for roofing contractors classified under NCCI class code 5551, even a small improvement can translate to tens of thousands of dollars in annual savings. The EMR compares your company's actual claims experience over a rolling three-year period to the expected losses for similarly sized businesses in your class code. An EMR below 1.00 means you are performing better than average and receive a premium credit; above 1.00 means you are performing worse and pay a surcharge.
The most effective strategy for lowering your EMR is preventing injuries from happening in the first place. OSHA requires fall protection for any roofing work performed at heights of six feet or more in construction, and compliance with this standard alone can eliminate the most severe and costly category of roofing injuries. Invest in quality fall protection equipment including personal fall arrest systems, guardrails, and safety nets. Ensure every crew member is trained on proper use, and enforce compliance without exception. A single fall-from-height claim can increase your EMR for three years and cost far more than the equipment and training required to prevent it.
Implement a formal written safety program that addresses the specific hazards in roofing work. This should include procedures for ladder safety, scaffolding, hot work with torches and kettles, electrical hazards near power lines, material handling, and heat illness prevention. Conduct regular toolbox talks at the start of each shift and document attendance. OSHA's On-Site Consultation Program, available through your state's occupational safety agency, provides free confidential safety assessments that can help you identify and correct hazards before they result in injuries.
When injuries do occur, how you manage the claim has a direct impact on your EMR. The EMR calculation gives more weight to claim frequency than claim severity, meaning multiple small claims will increase your EMR more than a single large claim of the same total dollar value. This means your first priority is preventing all injuries, not just the big ones. Minor strains, cuts, and eye injuries that might seem insignificant individually can accumulate and drive your EMR up substantially.
Establish a return-to-work program that brings injured employees back to light-duty or modified tasks as soon as medically appropriate. Every day an injured worker stays on lost-time status adds to the claim's indemnity cost, which directly feeds into your EMR calculation. Most workers' comp insurers have nurse case managers who can coordinate with treating physicians to facilitate safe return-to-work transitions. Studies consistently show that employees who return to modified duty recover faster and have better long-term outcomes than those who remain completely off work.
Report all injuries to your insurer immediately. Delayed reporting increases claim costs by an average of 30% to 50% because it delays medical treatment, allows injuries to worsen, and reduces the insurer's ability to manage the claim effectively. Establish a clear reporting protocol that requires supervisors to notify your office of any workplace injury within 24 hours.
Review your loss runs and EMR worksheet annually with your insurance broker. The NCCI EMR worksheet is a detailed document that shows exactly how each claim in your experience period contributes to your modification. Errors in the worksheet, such as claims attributed to the wrong employer, incorrect class codes, or open reserves that should have been closed, are more common than you might expect. Identifying and correcting these errors through the NCCI dispute process can result in an immediate reduction to your EMR.
Finally, consider working with a professional employer organization (PEO) or a group self-insurance program if your EMR has become so high that you cannot obtain affordable coverage in the standard market. These arrangements allow you to pool your risk with other employers, though they come with trade-offs in terms of control and cost structure that should be evaluated carefully with your broker and attorney.