A bidder reports 3 work-related injuries and illnesses over 624,000 hours. The calculated EMR is approximately what?

A bidder reports 3 work-related injuries and illnesses over 624,000 hours. The calculated EMR is approximately what?

• A. 0.95
• B. 0.97
• C. 0.98
• D. 0.96

Answer: (D)

Experience Modification Rate (EMR) measures how a company's workers’ compensation losses compare to what’s expected, adjusted for hours worked. For this kind of calculation, EMR can be approximated by comparing injuries to a standard 200,000 hours of work, then scaling to the actual hours worked. Compute the incident rate per 200,000 hours: multiply the number of injuries by 200,000 and divide by total hours worked. Here, 3 injuries × 200,000 hours = 600,000, and 600,000 ÷ 624,000 ≈ 0.9615. Rounded, that’s about 0.96. So the bidder’s EMR is approximately 0.96, which is below 1.0, indicating better-than-average safety performance relative to expectations.

Experience Modification Rate (EMR) measures how a company's workers’ compensation losses compare to what’s expected, adjusted for hours worked. For this kind of calculation, EMR can be approximated by comparing injuries to a standard 200,000 hours of work, then scaling to the actual hours worked.

Compute the incident rate per 200,000 hours: multiply the number of injuries by 200,000 and divide by total hours worked. Here, 3 injuries × 200,000 hours = 600,000, and 600,000 ÷ 624,000 ≈ 0.9615. Rounded, that’s about 0.96.

So the bidder’s EMR is approximately 0.96, which is below 1.0, indicating better-than-average safety performance relative to expectations.