Hinze, J; Bren, D C and Piepho, N (1995) Experience modification rating as measure of safety performance. Journal of Construction Engineering and Management, 121(4), pp. 455-458. ISSN 0733-9364
Abstract
Workers' compensation insurance is a significant cost component of construction labor. The manual rate for these insurance premiums is state- and trade-specific so the costs can vary considerably between geographic locations and between crafts. Another aspect of workers' compensation that should be understood is the experience modification rating (EMR), which is used to modify the premium paid. This modifier is essentially an incentive for firms to strive for good safety records, as firms with poor safety records will pay higher premiums. Examples have been developed to help clarify the manner in which the EMR values are impacted by different variables. Results show graphically how injury frequency has a larger impact on the EMR computation than does injury severity. The EMR is noticeably reduced when the hourly wages paid are increased. It is also reduced when the total wages paid per year are increased. Findings suggest that some degree of caution should be exercised if two firms are to be compared on the basis of their assigned EMR values.
| Item Type: | Article |
|---|---|
| Index terms: | construction labour, insurance, compensation, wages, injury, computation, safety performance |
| Subjects: | management, occupational health and safety management, business economics, health conditions and diseases, computational methods, dispute resolution, economic analysis |
| Topics: | Health and Safety, Business Strategy, Human Resources, Digital Applications, Legal Issues, Site Management |
| Descriptive scope: | 2 PC |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here