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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 88,991 1.1
ANGINA PECTORIS 51,039 1.1
ASBESTOSIS 67,433 1.1
ASPHYXIATION 214,567 1.1
BURN 43,661 1.1
CANCER 87,601 1.1
CARPAL TUNNEL SYNDROME 30,882 1.1
CONCUSSION 52,120 1.1
CONTAGIOUS DISEASE 18,462 1.1
CONTUSION 27,653 1.1
CRUSHING 62,281 1.1
DERMATITIS 9,960 1.2
DISLOCATION 75,331 1.1
DUST DISEASE, NOC (ALL OTHER PNEUMOCONIOSIS) 31,206 1.1
ELECTRIC SHOCK 120,024 1.1
ENUCLEATION (TO REMOVE, EX:TUMOR, EYE, ETC.) 92,807 1.1
FOREIGN BODY 19,283 1.1
FRACTURE 53,458 1.1
FREEZING 23,681 1.1
HEARING LOSS OR IMPAIRMENT (TRAUMATIC ONLY) 21,354 1.1
HEARING LOSS (OCCUPATIONAL DISEASE OR CUMULATIVE INJURY) 16,805 1.1
HEAT PROSTRATION 25,519 1.1
HERNIA 21,437 1.1
INFECTION 31,648 1.1
INFLAMMATION 39,017 1.1
LACERATION 21,380 1.1
MENTAL DISORDER 53,947 1.1
MENTAL STRESS 33,435 1.1
MULTIPLE INJURIES INCLUDING BOTH PHYSICAL AND PSYCHOLOGICAL 115,529 1.1
MULTIPLE PHYSICAL INJURIES ONLY 76,563 1.1
MYOCARDIAL INFARCTION (HEART ATTACK) 59,566 1.1
NO PHYSICAL INJURY 25,608 1.1
POISONING - CHEMICAL (OTHER THAN METALS) 58,019 1.1
POISONING - GENERAL (NOT OD OR CUMULATIVE INJURY) 34,260 1.1
POISONING - METAL 28,121 1.1
PUNCTURE 25,512 1.1
RESPIRATORY DISORDERS (GASES, FUMES, CHEMICALS, ETC.) 34,577 1.1
RUPTURE 71,460 1.1
SEVERANCE 134,886 1.1
SPRAIN 30,798 1.1
STRAIN 32,959 1.1
SYNCOPE 28,498 1.1
VASCULAR 193,510 1.1
VISION LOSS 104,623 1.1
ALL OTHER CUMULATIVE INJURIES, NOC  40,596 1.1
ALL OTHER OCCUPATIONAL DISEASE 49,603 1.1
ALL OTHER SPECIFIC INJURIES, NOC 47,669 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 "$afety Pays" are provided by National Council on Compensation Insurance, Inc. (NCCI). The data reflects the average cost of lost time workers' compensation insurance claims derived from unit statistical reports submitted to NCCI for policy years 2013-2015. NCCI makes no guarantees nor assumes any responsibility for the accuracy of or any results obtained through the use of the NCCI data provided through this tool. NCCI's information and data may not be used or copied in any manner except as provided in conjunction with the OSHA website tool, "$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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