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

Text Version

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.

Direct Costs

  1. Select an injury type from the drop-down menu OR enter the total workers' compensation costs.
  2. Enter the profit margin (leave blank to use default of 3%).
  3. Enter the number of injuries (leave blank to use default of one).
  4. Select "Add/Calculate" to compute the total direct and indirect costs.
  5. Repeat the step to add additional injuries to the list.

Injury Type

or

Workers' Compensation Costs (annual sum of costs)

OR

Enter Profit Margin (%) (leave blank to use default of 3%)

Enter Number of Injuries (leave blank to use default of one)

Estimated Total Cost

The extent to which the employer pays the direct costs depends on the nature of the employer's workers' compensation insurance policy. The employer always pays the indirect costs.

Injury Type Instances Direct Cost Indirect Cost Total Cost Additional Sale (Indirect) Additional Sale (Total)

Totals

Estimated Direct Costs:

Estimated Indirect Costs:

Combined Total (Direct and Indirect Costs):

Sales To Cover Indirect Costs:

Sales To Cover Total Costs: