$afety Pays: Estimated Costs of Occupational Injuries and Illness on Company Profits


Employers can use this simple web-based cost calculator ("$afety Pays") to assess the impact of occupational injuries and illnesses on their profitability. The tool 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. $afety Pays is intended as a tool to make the user aware of how occupational injuries and illnesses can impact a company's profitability.

The tool produces estimated direct and indirect costs and the sales that the company would need to generate to cover the indirect and total costs. Data on average claim cost estimates was obtained from the National Council on Compensation Insurance, Inc. (NCCI). The indirect cost estimates provided in this cost calculator are taken from the 1981 Business Roundtable publication *"Improving Construction Safety Performance," and are based on a study conducted by the Stanford University Department of Civil Engineering.

*Levitt RE, Parker HW, Samelson NM. Improving Contruction Safety Performance: The User's Role. Stanford University, Department of Civil Engineering 1981.



Estimated Costs of Occupational Injuries and Illnesses and Estimated Impact on a Company’s Profitability Worksheet ($afety Pays). Occupational Safety and Health Administration. https://www.osha.gov/dcsp/smallbusiness/safetypays/estimator.html