Join ASSE

Join Today

Apply Online


Apply via Fax/Email

Bookmark and Share

Impact of Accident Costs on Businesses

Key Statistics

  • The estimated direct U.S. workers compensation costs for the most disabling workplace injuries and illnesses in 2006 were $48.6 billion. This finding and many others are presented in the 2008 Liberty Mutual Workplace Safety Index(Resource: Liberty Mutual).
  • Lost productivity from workplace injuries and illnesses costs companies $60 billion each year. (OSHA)
  • Total economic costs of occupational deaths and injuries in 2004 were an estimated $142.2 billion and a total of 120 million days were lost in 2004 due to occupational deaths and injuries. (National Safety Council (NSC))
  • The median days away from work due to injuries and illnesses for goods-producing industries was 9 days in 2004, with more than a quarter of days-away-from-work cases at 31 days or more away from work. (Bureau of Labor Statistics)
  • Businesses spend $170 billion a year on costs associated with occupational illnesses and injuries. (American Industrial Hygiene Assoc., (AIHA) OSHA)
  • Employers spent $50.8 billion in 2003 on wage payments and medical care for workers hurt on the job. (Liberty Mutual)
  • Even off-the-job injuries can have a big impact on a manufacturer’s bottom line. About 165,000,000 days of lost production time were the result of off-the-job injuries in 2004 – a number that will grow to 420 million days of future lost production time. (NSC)

Articles

Evidence that Reducing Knee Injuries in Underground Mining may have a Substantial Impact on Mine Company Finances

Authors: Susan M. Moore, PhD and Jonisha Pollard, MS
Publisher: Journal of Safety, Health, and Environmental Research (vol. 6, no. 3, Winter 2010)
Summary: A study showing that mining companies can save significantly when they take the steps to reduce workers’ knee injuries.

The Impact of Catastrophes on Shareholder Value

Authors: Rory F. Knight and Deborah J. Pretty
Publisher: Templeton College, University of Oxford
Summary: Catastrophes provide an opportunity to evaluate how financial markets respond when a major risk becomes a reality.

Title: A Survey of the Safety Roles and Costs of Injuries in the Roofing Contracting Industry (2006)
Publisher: ASSE
Summary: Article reviews the direct and indirect costs resulting from workplace injuries in the roofing industry. Loss of productivity and schedule disruptions were the most expensive indirect costs.
Resource: ASSE Academics Journal

Title: The Costs of Violence/Stress at Work and the Benefits of a Violence/Stress-Free Working Environment (2001)
Publisher: ILO
Summary: This report explores the issues of stress and violence at work with the aim of establishing the costs these problems may present to the individual, the organization and society.
Resource: ILO (pdf)

Title: The Economics of Safety, Health, and Well-Being at Work: An Overview (2000)
Publisher: Peter Dorman
Summary: An overview of how and why safety and health is an integral component of business economics.
Resource: ILO (pdf)

Title: Key Findings from the Workplace Safety Index (1998 – 2001)
Publisher: Liberty Mutual
Summary: Key findings and resources relating to workplace accidents and costs.
Resource: ASSE

Title: Injury Rates as an Indicator of Business Success
Publisher: Industrial Health Vol. 44(2006), pages 166-168
Summary: Study of new small businesses that registered with the Workers’ Compensation Board of British Columbia. A statistical correlation was found between workplace safety and health and the survival of a small business. Businesses that failed within one to two years of start-up had an average injury rate of 9.71 while businesses that survived more than five years had an average injury rate of 3.89 in their first year of business.
Resource: OSHA

Title: Estimating the Costs of Unintentional Injuries (2007)
Publisher: National Safety Council
Summary: This bulletin illustrates how costs can be estimated for a community or state.
Resource: NSC