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Injury Cost Calculator

Estimating and calculating the true cost of workplace injuries



Direct Cost of Injury The $38,000 amount is taken from an average work related injury - source National Safety Council
Indirct Cost of the Injury Calculation based on Direct Cost x 4 = Indirect Cost
Total Cost Total Cost = Direct Cost + Indirect Cost
Profit Margin of Business (%)
plus
minus
Revenue Required to offset loss Revenue Required = ( Total Cost ) / ( % Profit Margin / 100 )
Or Revenue Required = ( C ) / ( D / 100 )
 


Explanation of Calculator

The direct costs of an injury are the easiest to see and understand.  These costs include emergency room and doctor visits, medical bills, medicines, and rehabilitation.


Indirect costs of an injury are often overlooked.  These cost can amount up to 4 times the direct cost of the injury.  Indirect costs include administrative time dealing with the injury and medical care, raises in insurance costs, replacing the hours lost of the injured employee with hiring another employee, loss of reputation and confidence in employees and clients, unwanted media attention, and more.


The total costs of an injury are suprising.  Beyond the direct costs, the indirect costs greatly increase the overall costs.  This is the true amount that the injury will cost in terms of money.


The profit margin of a business determines the revenue required to offset losses from an injury.  Even with high profit margins, no one wants to see their hard work wasted paying for preventable injuries.


This is the cost that a business will incur from an injury.  In order to pay for the costs of the initial injury and indirect costs, a business must make a profit on revenue to recover those costs.

The cost of one typical injury is far more expensive than the salary of a safety professional or upgrading an existing safety program.  Safety is a smart business decision that companies must embrace to be competitive in today's market place.


       
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