Making the Business Case for Safety and Health
Costs
In addition to their social costs, workplace injuries and
illnesses have a major impact on an employer's bottom line. It has been estimated that employers pay
almost $1 billion per week for direct workers' compensation costs alone. The costs of workplace injuries and illnesses
include direct and indirect costs. Direct costs include workers' compensation
payments, medical expenses, and costs for legal services. Examples of indirect costs
include training replacement employees, accident investigation and
implementation of corrective measures, lost productivity, repairs of damaged
equipment and property, and costs associated with lower employee morale and
absenteeism.
The following resources provide background on the costs of workplace injuries
and illnesses and how employers can estimate these costs at their workplaces.
- Workers' Compensation Costs of Falls in Construction [PPT* - 471 KB]. OSHA, (2012). Study shows that the average workers’ compensation claims costs for falls by roofers and carpenters are most costly than other falls.
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White Paper on Return on Safety Investment. American Society of
Safety Engineers (ASSE), (2002, June). Summarizes the economic and other costs
of workplace injuries and illnesses.
- Impact of Accident Costs on Businesses. American Society of Safety Engineers (ASSE). Provides information on the economic and other costs of workplace injuries and illnesses.
- Sang D. Choi. " A Survey of the Safety Roles and Costs of Injuries in the
Roofing Contracting Industry." Journal of Safety, Health and
Environmental Research Vol. 3, No. 1, (2006, Spring). Reviews
the direct and indirect costs resulting from workplace injuries in the roofing
industry. Loss of productivity and schedule disruptions were the most
expensive indirect costs.
- 2010 Liberty Mutual Workplace Safety Index
[146 MB PDF, 2 pages].
Liberty Mutual Insurance Company, (2010). Tracks the causes and costs of the most disabling workplace injuries and illnesses in 2008. Researchers combine information from Liberty Mutual, the Bureau of Labor Statistics, and the National Academy of Social Insurance to provide a broad snapshot.
- Estimating the Costs of Unintentional Injuries. National Safety
Council. Illustrates how economic costs of unintentional injuries, including workplace
injuries, can be estimated.
- J. Paul Leigh, "Economic Burden of Occupational Injury and Illness in the United States." Milbank Quarterly, Vol. 89, Issue 4, p. 728 (Dec. 2011). Provides estimates of the national costs of occupational injury and illnesses among civilians in the United States for 2007. The total estimated costs were approximately $250 billion.
- J. Paul Leigh, Steven Markowitz, Marianne Fahs and Phillip Landrigan.
"Costs
of Occupational Injuries and Illnesses." University of Michigan Press,
(2000). Presents estimates of the incidence, prevalence, and costs
of workplace fatalities, injuries, and illnesses for the entire civilian
workforce of the United States in 1992.
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Safety & Health Management Systems. OSHA eTool. There
are four crucial questions you should be asking when it comes to safety and health programs. The
detailed answers are found in the four modules of this eTool, including a module on the benefits
of implementing an effective safety and health program. It includes
the following information on the costs of workplace injuries and illnesses:
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Costs of accidents. Background on direct and indirect costs.
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Annual costs. Cost calculation worksheet to help users estimate annual
costs of workplace injuries and illnesses.
- The Economic Burden of Occupational Fatal Injuries to Civilian Workers in the United States Based on the Census of Fatal Occupational Injuries, 1992-2002. National Institute for Occupational Safety and Health (NIOSH) Publication No. 2011-130, (2011). Presents estimates of economic costs of workplace fatalities using revised methods and data from the Bureau of Labor Statistics.
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*These files are provided for downloading.
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