Assessing Impact of Safety Incidents

Monday, February 23, 2015 @ 05:02 PM gHale

Safety can add to the bottom line.

That is because the Occupational Safety and Health Administration’s (OSHA) “$afety Pays” program can help employers assess the impact of occupational injuries and illnesses on their profitability.

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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 cover those costs.

The program acts 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.

The “$afety Pays” program will:
• Allow users to pick an injury type from a drop-down list or to enter their workers’ compensation costs
• Prompt users for information to do the analysis, including their profit margin and number of injuries
• Generate a report of the costs and the sales needed to cover those costs

The program’s goal is to help raise employers’ awareness of the impact of occupational injuries and illnesses on profitability.

The average claim cost estimates used in “$afety Pays” end up provided by National Council on Compensation Insurance, Inc. (NCCI).

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