Rocio Luna’s Approach to EMR Optimization
In the competitive world of construction and staffing, managing your Experience Modification Rate (EMR) is crucial for maintaining affordable insurance premiums and winning larger bids. On the latest episode of the Inside Insight podcast, presented by CR Solutions, we had the privilege of speaking with Rocio Luna, a seasoned commercial insurance broker at Insurax, who specializes in helping businesses optimize their EMRs.
Understanding the Importance of EMR
EMR is a critical factor in determining your insurance premiums. A higher EMR not only increases your costs but also limits your ability to bid on projects competitively. Rocio explains that the EMR is influenced by the number and severity of workers’ compensation claims a business files, as well as payroll accuracy. Many contractors overlook the impact of payroll on their EMR, focusing solely on claims. However, Rocio emphasizes that underreporting payroll can lead to inflated EMRs, which ultimately drives up insurance premiums.
Strategies for EMR Optimization
1. Accurate Payroll Reporting: Rocio stresses the importance of accurate payroll reporting. She explains that underreporting payroll in an attempt to reduce insurance costs can backfire, leading to higher EMRs. This in turn results in increased premiums and limits on the types of projects a business can bid on.
2. Implementing Risk Management Programs: Developing a comprehensive risk management program is key to lowering your EMR. Rocio shares her approach, which includes creating standard operating procedures (SOPs) for handling injuries and claims. These procedures ensure that incidents are reported and managed efficiently, reducing the impact on the company’s EMR.
3. Return-to-Work Programs: A well-structured return-to-work program can significantly reduce the costs associated with workers’ compensation claims. Rocio highlights how bringing injured employees back to work in a limited capacity not only helps lower EMRs but also boosts company morale. This proactive approach ensures that employees remain engaged and that businesses do not incur unnecessary costs related to long-term disability.
4. Claims Management: Effective claims management is crucial in controlling your EMR. Rocio advises working closely with insurance carriers and adjusters to close claims quickly and at the lowest possible cost. By actively managing claims, businesses can minimize their impact on the EMR, leading to lower premiums and a more competitive position in the market.
The Proactive Approach to EMR Management
Rocio advocates for a proactive approach to EMR management, emphasizing that businesses are not stuck with high EMRs. By implementing the right strategies, companies can take control of their EMRs and reduce their insurance premiums. This approach not only saves money but also enhances the company’s ability to secure larger and more lucrative contracts.
Culture and EMR Management
Beyond the technical aspects of EMR management, Rocio discusses the importance of company culture. She believes that fostering a culture of safety and support is essential for effective risk management. When employees feel valued and understand the importance of safety, they are more likely to report incidents promptly and participate in return-to-work programs. This cultural shift can lead to a more engaged workforce and a healthier bottom line.
Rocio Luna’s insights provide a valuable roadmap for businesses looking to optimize their EMRs. By focusing on accurate payroll reporting, developing comprehensive risk management programs, implementing return-to-work strategies, and managing claims effectively, companies can significantly reduce their EMRs and, in turn, their insurance premiums. This proactive approach not only saves money but also positions businesses for greater success in a competitive market.
For more detailed insights and to hear the full conversation with Rocio Luna, tune in to the Inside Insight podcast. Whether you’re a contractor, a business owner, or someone involved in risk management, this episode is packed with actionable advice that can transform your approach to EMRs.
