What is the purpose of an EMR?

The purpose of an Experience Modification Rate (EMR) is to adjust a company's Workers' Compensation insurance premium based on its claims history and safety record. The EMR reflects a company’s actual losses compared to the average losses in its industry. A lower EMR indicates better safety performance and less risk of future claims, which can lead to lower insurance premiums. Conversely, a higher EMR suggests a poorer safety record, potentially resulting in higher costs for Workers’ Compensation coverage.

In terms of the other options, determining project timelines pertains to project management and scheduling, which is outside the scope of what an EMR addresses. Assessing contractor ethics is a matter of evaluating a contractor's moral standards and business practices rather than their financial or risk profile in terms of insurance. Establishing subcontractor payments relates to financial agreements and compensation structures in contracts, again not connected to the EMR's focus on safety and insurance costs.