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OSHA's $afety Pays Program

Estimated Costs of Occupational Injuries and Illnesses and Estimated Impact on a Company's Profitability Worksheet

Employers can use the "$afety Pays" to assess the impact of occupational injuries and illnesses on their profitability. This program uses a company's profit margin, the average costs of an injury or illness, and an indirect cost multiplier to project the amount of sales a company would need to generate to cover those costs. The program is intended as a tool to raise awareness of how occupational injuries and illnesses can impact a company's profitability, not to provide a detailed analysis of a particular company's occupational injury and illness costs. Your local OSHA On-site Consultation Office can help small businesses identify workplace hazards and develop and implement an effective injury and illness prevention program.

How to calculate costs

Step 1: Select Injury Type from the table below noting the Average Direct Cost Multiplier OR Enter the total workers' compensation costs

Step 2: Enter the Profit Margin

Step 3: Enter the Number of Injuries

Step 4: Calculate the Total Direct Cost by multiplying the Direct Costs Multiplier by Number of Injuries.

Step 5: Calculate the Indirect Costs by multiplying the Total Direct Cost by Indirect Cost Ratio.

Step 6: Calculate the Total Costs by adding the Direct Cost to Indirect Cost

Step 7: Calculate the Additional Sales (Indirect) needed by multiplying the Indirect Cost by 100 divided by the Profit Margin.

Step 8: Calculate the Additional Sales (Total) needed by multiplying the Total Cost by 100 divided by the Profit Margin.

Step 9: Repeat the step to calculate other injuries on the worksheet.

Step 10: Calculate the sum of Total Costs by adding all Injury Type Total Direct Costs.

Worksheet

These tables are best viewed on tablets, notebooks, or desktop computer screens.

  Enter Injury Type #1 Enter Injury Type #2 Enter Injury Type #3

 

 

 

 

 

 

Enter Injury Type
Average Direct Cost Multiplier
OR
Enter Workers' Compensation Costs
Enter Injury Type
Indirect Cost Ratio
Enter Profit Margin
Enter Number of Injuries
Calculate Total Direct Cost (multiply Direct Costs Multiplier by Number of Injuries)
Calculate Indirect Costs (multiply Total Direct Cost by Indirect Cost Ratio)
Calculate Combined Total Costs (add Direct Cost to Indirect Cost)
Calculate Sales To Cover Indirect Costs (multiply Indirect Cost by 100/Profit Margin)
Calculate Sales To Cover Total Costs (multiply Total Cost by 100/Profit Margin)
Sum of all Injury Costs


(add Total Direct Costs from all Injury Type Columns)

Injury Type Index

These tables are best viewed on tablets, notebooks, or desktop computer screens.

Injury Type Average Direct cost Indirect Cost Ratio
AMPUTATION 66,777 1.1
ANGINA PECTORIS 64,215 1.1
ASBESTOSIS 14,909 1.1
ASPHYXIATION 138,043 1.1
BLACK LUNG 50,679 1.1
BURN 37,389 1.1
CARPAL TUNNEL SYNDROME 30,000 1.1
CONCUSSION 60,770 1.1
CONTAGIOUS DISEASE 10,469 1.1
CONTUSION 27,042 1.1
CRUSHING 56,557 1.1
DERMATITIS 10,365 1.1
DISLOCATION 73,800 1.1
DUST DISEASE, NOC (ALL OTHER PNEUMOCONIOSIS) 27,561 1.1
ELECTRIC SHOCK 86,528 1.1
ENUCLEATION (TO REMOVE, EX:TUMOR, EYE, ETC.) 96,925 1.1
FOREIGN BODY 18,953 1.1
FRACTURE 48,492 1.1
FREEZING 36,085 1.1
HEARING LOSS OR IMPAIRMENT (TRAUMATIC ONLY) 20,953 1.1
HEAT PROSTRATION 23,347 1.1
HERNIA 22,548 1.1
INFECTION 22,915 1.1
INFLAMMATION 35,007 1.1
LACERATION 19,059 1.1
LOSS OF HEARING 19,074 1.1
MENTAL DISORDER 32,752 1.1
MENTAL STRESS 29,809 1.1
MULTIPLE INJURIES INCLUDING BOTH PHYSICAL AND PSYCHOLOGICAL 125,155 1.1
MULTIPLE PHYSICAL INJURIES ONLY 76,532 1.1
MYOCARDIAL INFARCTION (HEART ATTACK) 80,606 1.1
NO PHYSICAL INJURY 23,952 1.1
POISONING - CHEMICAL (OTHER THAN METALS) 37,182 1.1
POISONING - GENERAL (NOT OD OR CUMULATIVE INJURY) 28,459 1.1
PUNCTURE 22,716 1.1
RESPIRATORY DISORDERS (GASES, FUMES, CHEMICALS, ETC.) 27,684 1.1
RUPTURE 76,430 1.1
SEVERANCE 103,998 1.1
SPRAIN 28,866 1.1
STRAIN 33,528 1.1
SYNCOPE 31,435 1.1
VASCULAR 152,764 1.1
VISION LOSS 42,809 1.1
ALL OTHER CUMULATIVE INJURIES, NOC  40,043 1.1
ALL OTHER OCCUPATIONAL DISEASE (Changed from ALL OTHER OCCUPATIONAL DISEASE OR INJURY 35,749 1.1
ALL OTHER SPECIFIC INJURIES, NOC 42,227 1.1
Disclaimer:

This program is not a new standard or regulation, and creates no new legal obligations. It is intended to help raise employers' awareness of the impact of occupational injuries and illnesses on profitability. The average claim cost estimates used in "$afety Pays" are provided by National Council on Compensation Insurance, Inc. (NCCI). The data reflects the average cost of lost time workers' compensation insurance claims derived from unit statistical reports submitted to NCCI for policy years 2009-2011. NCCI makes no guarantees nor assumes any responsibility for the accuracy of or any results obtained through the use of the NCCI data provided through this tool. NCCI's information and data may not be used or copied in any manner except as provided in conjunction with the OSHA website tool, "$afety Pays." Information entered into the form fields is not captured by OSHA. The system is not programmed to capture or relay any information entered or calculated by the worksheet. For additional information on the data and calculations used in "$afety Pays," see Background of the Cost Estimates.

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