How does a contractor's safety record affect commercial roofing risk?
The Importance of the Experience Modification Rate (EMR)
In the commercial roofing sector, a standard contractor's license confirms only that a business has met the minimum state requirements to operate. It does not provide insight into the safety culture or the risk profile of the organization. For facility managers and asset owners, the Experience Modification Rate (EMR) is a critical metric for evaluating the hidden risks associated with a specific contractor.
What the EMR Tells a Decision-Maker
The EMR is used by insurance carriers to gauge the past cost of injuries and the future risk of a contractor. The industry baseline is 1.0.
- Below 1.0: The contractor has a safer-than-average track record. This usually suggests disciplined job site management and lower insurance overhead.
- Above 1.0: The contractor has a higher-than-average frequency or severity of workplace injuries.
Why This Matters for Project Outcomes
A high EMR is often a leading indicator of organizational instability. In commercial roofing, where high-voltage equipment, hazardous materials, and significant heights are involved, a lack of safety discipline can lead to project delays, legal complications, and third-party liability for the property owner. Furthermore, contractors with high EMRs pay significantly more for workers' compensation insurance, which can impact their financial solvency over the duration of a long-term warranty period.
Verification Steps
Decision-makers should request a formal letter from the contractor’s insurance broker stating their EMR for the last three to five years. Trends are as important as the current number; a rising EMR may indicate a breakdown in company-wide safety protocols or a change in field leadership.
Next step
Request an EMR verification letter from your bidding contractors to assess their long-term operational risk.