How Is Your Insurance Rate Determined?
A big piece of your roofing insurance consists of workers’ compensation coverage. This portion of your cost is determined by the number of injuries your roofers tally up over a period of time. These statistics are calculated into a complex national average called Experience Modification Rate (EMR). Like a credit rating, EMR drives the cost of your workers’ compensation, and ultimately the price of your roofing insurance.
Roofing & EMR
The EMR is a mathematical standard used by roofing insurance companies to determine risk based on current claims and injuries and future projections. These calculations are utilized to decide the premiums on roofing insurance in workers’ compensation claims.
The actual figure is 1.0, and it is devised by the National Council of Compensation Insurance (NCCI). NCCI compares companies within the same industry for worker risks, injuries, losses, payroll, and a collection of other factors. Through these complex calculations, NCCI comes up with a number for each company based on an average of 1.0. Companies with 1.0 or lower are considered to have good ratings, while businesses above 1.0 are rated less well. Those set above 1.0 pay higher premiums on their roofing insurance due to higher anticipated amounts of workers’ compensation claims.
How to Lower EMR Ratings
Getting the 1.0 or below rating needed to get a more desirable roofing insurance premium isn’t easy, but it’s doable. It requires reducing the injuries of your roofers, and thereby lowering the claims against your roofing insurance.
One of the easiest–and most important–ways for contractors to do this is by creating a health and safety plan (HASP). A strong HASP includes specific procedures, policies, and training to prevent accidents, protect workers, and ensure supervisors know how to enforce safety measures effectively.
Key Component for Roofing Contracts Health and Safety Plan
Supervisors
Supervisors are critical to the success of a HASP. They ensure that safety protocols are followed, provide on-site leadership, and manage hazards proactively. Their responsibilities often include:
-
- Site Inspections and Hazard Assessments: Supervisors conduct daily or weekly inspections to identify potential hazards, such as loose roofing materials, improper scaffolding setup, or weather-related risks.
- Training Enforcement: They ensure all workers are properly trained in safety practices, such as fall protection protocols and equipment use.
- Accident Reporting and Investigation: If an incident occurs, supervisors are responsible for documenting it, investigating the cause, and implementing corrective actions.
- Safety Meetings (Toolbox Talks): Regular safety meetings keep workers informed of best practices and allow supervisors to address site-specific risks.
Workers
Workers are on the front lines of every roofing job, and their compliance with the HASP is crucial. A well-designed HASP includes guidance and training for workers on:
-
- Fall Protection Systems: Workers must wear personal protective equipment (PPE) like harnesses and understand how to use guardrails, anchor points, and safety nets properly.
- Ladder Safety and Scaffolding Guidelines: Workers learn proper ladder placement and how to secure scaffolding to prevent falls.
- Safe Material Handling: Training on how to lift, move, and install heavy roofing materials to avoid injuries.
- Heat Stress and Weather Preparedness: Workers are trained to recognize the signs of heat stress and other weather-related hazards, ensuring they take breaks and hydrate appropriately.
Policies
The backbone of every HASP is a solid foundation of policies and procedures that are well-documented, communicated, and enforced. Some essential policies include:
-
- General Operating Policies: Clear instructions on how day-to-day tasks should be performed to minimize risks.
- Incident Response and Emergency Procedures: Guidelines on how to respond to accidents, injuries, and weather emergencies (such as storms or lightning).
- Drug-Free Workplace Policy: A zero-tolerance policy ensures that workers are alert and capable of safely performing their duties.
- Disciplinary Actions for Non-Compliance: A structured system for handling violations ensures everyone adheres to safety protocols.
- Recordkeeping and Documentation: Policies to maintain logs of injuries, training sessions, and inspections, supporting transparency and continuous improvement.
Best Practices for Implementing a HASP to Lower Your EMR
- Continuous Training: Regular refresher courses ensure that supervisors and workers stay updated on safety protocols and OSHA standards.
- Incentive Programs: Rewarding employees for safe behavior encourages a culture of safety.
- Proactive Risk Management: Identify and address hazards before they lead to incidents, reducing claims and maintaining a low EMR.
- Regular Audits and Updates: Review and update your HASP periodically to address new risks, technologies, or regulatory changes.
By implementing a robust HASP and fostering a culture of safety, you can significantly reduce workplace injuries, keep your EMR below 1.0, and enjoy more affordable roofing insurance premiums. Start building or refining your health and safety plan for your contracting business today to secure savings and protect your team effectively.
