What Do Accidents Cost You?
Want to estimate the costs of workplace accidents? OSHA has a tool for doing just that.
In addition to the costs in pain and suffering to workers and their families, workplace accidents have a major impact on your bottom line. The Liberty Mutual Workplace Safety Index for 2010 estimates that employers nationwide pay over $1 billion per week for direct workers’ compensation costs alone.
But that’s only half the story, since costs of workplace injuries and illnesses include both direct and indirect costs.
- Direct costs include workers’ compensation payments, medical expenses, and costs for legal services.
- Indirect costs include training replacement employees, accident investigation and implementation of corrective measures, lost productivity, repairs of damaged equipment and property, and costs associated with lower employee morale and absenteeism.
To estimate how much accidents in your workplace are really costing your organization, you can consult OSHA’s “$afety Pays” program.
“$afety Pays is an interactive expert system to assist you in estimating the costs of occupational injuries and illnesses and the impact on your company’s profitability.
This system 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 in order to cover those costs.
OSHA says you can use this information to predict the direct and indirect impact of injuries and illnesses on your workplace. This will give you yet another piece of ammunition to use to support your argument for investing in safety and health programs.
$afety Pays is easy to use and:
- Offers choices from a set of lost workday injuries and illnesses
- Prompts you for information to do the analysis
- Allows you to input the actual loss figures or workers’ compensation costs
- Generates a report of the costs and the sales needed to cover those costs
To find out more about the $afety Pays program and to access the interactive system go to the $afety Pays page on OSHA’s website.
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