Through experience rating, businesses have a financial incentive to minimise work-related injuries and losses perhaps through implementation of safety programs. Also, EMR encourages employers ensure that injured employees are returned to work as soon as possible. On the insurance providers’ side, experience rating makes sure that adequate premiums are collected to cover all the risks insured by different businesses. Businesses incapable of controlling EMR in-house can hire full-service safety companies to help them control their EMR and consequently reduce overall costs.
Particularly with regard to saving money and bidding for work, lower EMR could give businesses a competitive edge over other rivals in their industry. Construction owners and general contractors have realised how advantageous lower EMR numbers are, and usually prequalify companies with low EMR scores even before they assess any bids. Therefore, it would be rather unfortunate for businesses to miss out on money and opportunities due to high EMR.