OSHA's $afety Pays Program


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

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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


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

Injury Type

Average
Direct Cost

Indirect Cost
Ratio

Amputation

$63,369

1.1

Angina Pectoris

$82,669

1.1

Asbestosis

$40,652

1.1

Asphyxiation

$138,108

1.1

Black Lung

$49,232

1.1

Burn

$39,672

1.1

Carpal Tunnel Syndrome

$28,647

1.1

Concussion

$71,777

1.1

Contagious Disease

$22,406

1.1

Contusion

$26,235

1.1

Crushing

$52,894

1.1

Dermatitis

$9,294

1.2

Dislocation

$71,322

1.1

Dust Disease, NOC (all other pneumoconiosis)

$24,974

1.1

Electric Shock

$103,534

1.1

Enucleation (to remove ex: tumor, eye, etc.)

$120,793

1.1

Foreign Body

$19,454

1.1

Fracture

$45,377

1.1

Freezing

$31,987

1.1

Hearing Loss or Impairment (traumatic only)

$18,644

1.1

Heat Prostration

$20,902

1.1

Hernia

$23,083

1.1

Infection

$22,056

1.1

Inflammation

$32,080

1.1

Laceration

$18,137

1.1

Loss of Hearing

$18,601

1.1

Mental Disorder

$39,828

1.1

Mental Stress

$31,637

1.1

Multiple Injuries Including Both Physical and Psychological

$135,405

1.1

Multiple Physical Injuries Only

$78,953

1.1

Myocardial Infarction (Heart Attack)

$117,112

1.1

No Physical Injury

$28,327

1.1

Poisoning - Chemical (other than metals)

$30,121

1.1

Poisoning - General (not OD or cumulative injury)

$32,054

1.1

Puncture

$20,557

1.1

Respiratory Disorders (gases, fumes, chemicals, etc.)

$30,712

1.1

Rupture

$80,597

1.1

Severance

$97,570

1.1

Sprain

$28,338

1.1

Strain

$32,319

1.1

Syncope

$25,737

1.1

Vascular

$121,416

1.1

Vision Loss

$56,202

1.1

All Other Cumulative Injury, NOC

$39,193

1.1

All Other Occupational Disease

$32,295

1.1

All Other Specific Injuries, NOC

$40,482

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 "$afety Pays" are provided by National Council on Compensation Insurance, Inc. (NCCI). The data reflects the average cost of lost time workers' compensation insurance claims derived from unit statistical reports submitted to NCCI for policy years 2007-2009. NCCI makes no guarantees nor assumes any responsibility for the accuracy of or any results obtained through the use of the NCCI data provided through this tool. NCCI's information and data may not be used or copied in any manner except as provided in conjunction with the OSHA website tool, "$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.