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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 [JavaScript Version]
"$afety Pays" helps estimate cost savings that can be achieved through the prevention of occupational injuries and illness claims. Businesses can use this information to predict the direct and indirect costs of injuries and the sales needed to compensate for these losses. Your local OSHA On-site Consultation Office can provide information and assistance on developing and implementing an effective safety and health management system that can help prevent injuries and/or illnesses to provide a safe working environment for your employees.  
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 Multiplier 		Indirect Cost
Ratio
AIDS $ 4,469 1.2
Amputation $ 48,318 1.2
Angina Pectoris $ 28,136 1.2
Asbestosis $ 23,346 1.2
Asphyxiation $ 88,126 1.2
Black Lung $ 34,165 1.2
Burn $ 27,380 1.2
Byssinosis $ 13,523 1.2
Cancer $ 52,785 1.2
Carpal Tunnel Syndrome $ 24,695 1.2
Concussion $ 68,456 1.2
Contagious Disease $ 15,657 1.2
Contusion $ 23,748 1.2
Crushing $ 45,272 1.2
Dermatitis $ 8,295 1.2
Dislocation $ 59,207 1.2
Dust Disease, NOC (all other pneumoconiosis) $ 27,682 1.2
Electric Shock $ 86,448 1.2
Enucleation (to remove ex: tumor, eye, etc.) $ 62,699 1.2
Foreign Body $ 17,585 1.2
Fracture $ 37,911 1.2
Freezing $ 13,365 1.2
Hearing Loss or Impairment (traumatic only) $ 15,304 1.2
Heat Prostration $ 21,053 1.2
Hernia $ 18,850 1.2
Infection $ 20,938 1.2
Inflammation $ 24,881 1.2
Laceration $ 15,398 1.2
Loss of Hearing $ 13,145 1.2
Mental Disorder $ 37,420 1.2
Mental Stress $ 27,004 1.2
Multiple Injuries Including Both Physical and Psychological $ 115,961 1.2
Multiple Physical Injuries Only $ 58,607 1.2
Myocardial Infarction (Heart Attack) $ 85,962 1.2
No Physical Injury $ 22,093 1.2
Poisoning - Chemical (other than metals) $ 43,690 1.2
Poisoning - General (not OD or cumulative injury) $ 44,761 1.2
Poisoning - Metal $ 25,054 1.2
Puncture $ 15,381 1.2
Radiation $ 36,124 1.2
Respiratory Disorders (gases, fumes, chemicals, etc.) $ 35,266 1.2
Rupture $ 61,506 1.2
Severance $ 59,394 1.2
Silicosis $ 31,393 1.2
Sprain $ 23,098 1.2
Strain $ 27,363 1.2
Syncope $ 31,138 1.2
VDT-Related Diseases $ 51,404 1.2
Vascular $ 56,316 1.2
Vision Loss $ 49,693 1.2
All Other Cumulative Injury, NOC $ 30,647 1.2
All Other Occupational Disease Injury, NOC $ 27,820 1.2
All Other Specific Injuries, NOC $ 35,671 1.2
 
Disclaimer: National Council on Compensation Insurance, Inc (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.

For additional information on how "$afety Pays", see Background of the Cost Estimates.
 
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Occupational Safety & Health Administration
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Washington, DC 20210
 Page last updated: 06/05/2008