Environmental Engineering Reference
In-Depth Information
Thus,. as. a. cost. factor,. the. reduction. in. occupational. injuries. and. illnesses. is.
important. to. cost. containment.. Any. employer. that. is. responsible. understands. the.
relationship.between.the.bottom-line.proit.and.the.number.of.accidents.
Employers.must.set.up.a.tracking.system.that.monitors.each.workers'.compensa-
tion.claim.iled.by.their.workers..They.also.need.to.work.diligently.to.return.workers.
back.to.the.workforce.as.soon.as.medically.feasible..As.part.of.the.healing.process,.
employers. must. ensure. that. the. workers. are. receiving. their. medication. and. going.
for.medical.treatment..The.longer.a.worker.is.away.from.the.workplace,.the.more.
unlikely.it.is.that.he.or.she.will.not.return.to.the.workforce..It.has.been.documented.
that. workers. who. are. off. work. for. 6. months. have. a. probability. of. a. 50. percent. of.
returning.to.work..For.those.off.a.year,.the.probability.is.25.percent;.and.after.two.
years.or.longer,.the.probability.of.returning.to.work.is.0.percent.
Each.workers'.compensation.claim.is.either.directly.or.indirectly.a.drain.on.the.
proit.margin.of.the.company..This.is.the.primary.business.reason.to.track.workers'.
compensation.claims..Many.employers.who.have.a.less.than.stellar.experience.modi-
ication.rate.(EMR).may.have.dificulty.in.procuring.work,.or.bidding.on.work,.when.
perspective.buyers.assess.their.safety.and.health.performance.
The.prevention.of.occupational.injuries.and.illnesses.will.deinitely.reduce.the.cost.
of.workers'.compensation.premiums..It.does.not.matter.whether.the.company.pays.
into.the.state.workers'.compensation.system.or.is.self-insured..What.motivates.most.
employers.to.reduce.workplace.injuries.and.illnesses.is.usually.dollars..Some.studies.
show.that.other.beneits.result.from.a.decrease.in.the.number.of.injuries.and.illnesses..
For.example,.employers.can.expect.to.increase.attendance,.morale,.and.productivity..
These.are.just.a.few.of.the.side.effects.of.reduced.workers'.compensation.costs.
cost oF AccIdents
The.direct.(insured).cost.of.accidents.is.by.far.the.easiest.to.track..These.direct.costs.
are.for.medical.care,.repairing.or.replacing.damaged.equipment,.and.workers'.com-
pensation.premiums..There.is.no.possible.way.to.not.see.the.cost.of.an.ambulance,.
hospital. bill,. or. repair. bill. when. it. comes.. Likewise,. employers. know. the. dollar.
amounts.being.put.out.for.workers'.compensation.
Data.from.the.National.Safety.Council.(NSC).for.2008.indicates.that.the.costs.
of.work-related.injuries.and.deaths.were.$183.0.billion..Wage.and.productivity.loss.
accounted.for.$88.4.billion,.medical.cost.for.$38.3.billion,.and.employer.cost.equaled.
$12.7 billion..The.average.cost.of.a.workplace.death.was.put.at.$1,310,000.and.a.dis-
abling.injury.cost.at.$48,000..A.look.at.other.injury.costs.provided.by.the.National.
Safety.Council.indicates.that.a.reasonable,.serious,.non-disabling.injury.would.have.
an.average.cost.of.$22,674.(2006-2007).(NSC.Injury.Fact,.2010).
Many. safety. and. health. experts. estimate. that. the. indirect. (uninsured). costs. of.
accidents,.and.the.costs.associated.with.them,.are.equal.to.ive.to.ten.times.the.direct.
cost.of.the.accidents..These.indirect.costs.are.caused.by.many.of.the.following:
•.
Time.lost.from.work.by.the.injured
•.
Loss.in.earning.power
•.
Economic.loss.to.injured.worker's.family
