The injury and illness loss cost estimates were derived from National
Council on Compensation Insurance, Inc data. The loss injury data
information is based on unit statistical reports submitted for policy year
2004.
The National Council on Compensation Insurance, Inc. is the largest provider
of workers compensation insurance and employee injury data and statistics in
the nation. The NCCI studies workplace injuries and other national and state
factors impacting workers compensation. NCCI analyzes industry trends,
prepares workers compensation insurance rate recommendations, assists in
pricing proposed legislation, and provides a variety of data products to
more than 900 insurance companies and nearly 40 state governments.
NCCI has supplied their current copyrighted data about average cost per
workers' compensation insurance claim by nature of injury in NCCI states to
OSHA for their use in conjunction with their Website tool, "Safety Pays".
NCCI makes no guarantees nor assumes any responsibility for the accuracy of
any resulting data or information from the use of our numbers by OSHA or any
people who use this tool. NCCI's information and data may not be otherwise
used or copied in any manner.
The indirect cost estimates provided in this program are taken from the
Business Roundtable publication, Improving Construction Safety Performance,
and are based on a study conducted by the Stanford University Department of
Civil Engineering. The magnitude of indirect costs is inversely related to
the seriousness of the injury. The less serious the injury the higher the
ratio of indirect costs to direct costs (four or five times higher). For
more serious injuries, indirect costs will average one or two times the
direct costs of the injury. While they account for the majority of the true
costs of an accident, indirect costs are usually uninsured and therefore,
unrecoverable. An abbreviated listing of INDIRECT COST drivers includes:
- Any wages paid to injured workers for absences not covered by workers'
compensation;
- The wage costs related to time lost though work stoppage;
- Administrative time spent by supervisors following accidents;
- Employee training and replacement costs;
- Lost productivity related to new employee learning curves and
accommodation of injured employees; and
- Replacement costs of damaged material, machinery and property.
"$afety Pays" uses the sliding
scale table at right
to calculate the indirect costs of the injuries and illness.
Statistically, the larger the amount of claim,
the smaller the ratio used for the calculation.
|
|
Direct Costs
|
Indirect Cost Ratio
|
|
$0 - $2,999
|
4.5
|
|
$3,000 - $4,999 |
1.6
|
|
$5,000 - $9,999 |
1.2
|
|
$10,000 or more
|
1.1
|
|
|
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Printing Instructions