What does the abbreviation EMR stand for?

The abbreviation EMR stands for Experience Modification Rating. This rating is a key component used in workers' compensation insurance to assess an employer's risk relative to industry standards. It is calculated based on the employer's historical workers' compensation claims and the actual payroll of the employer compared to the average within their industry segment.

A lower EMR indicates that a company has fewer or less severe claims compared to its peers, which typically results in lower insurance premiums. Conversely, a higher EMR suggests a greater risk level and can lead to increased costs. This rating is crucial for contractors and businesses alike to understand, as it not only affects insurance costs but can also impact their competitive edge in the market when bidding for projects.

The other options do not accurately represent the commonly understood term related to workers' compensation insurance and risk assessment.