How To Quickly Estimate Your Indirect, Uninsured Workers Compensation Costs
If you are like most businesses today you are being constantly pressured by customers to reduce prices and improve quality. At the same time you must constantly fend off vendors and suppliers who are attempting to pass along their price increases to you. In this environment you probably spend a tremendous amount of time and financial resources improving productivity and reducing waste throughout your organization. You know all too well that this waste and inefficiency represents a significant threat to your competitive edge, growth plans, and bottom line profit.
Have you considered the fact that every worker injury is a major disruption to your work process and creates waste and inefficiency throughout your organization? According to the Occupational Safety and Health Administration (OSHA), for every $1 you spend on medical expenses for a workers compensation claim you also incur $4 in indirect workers compensation costs. Also, for every $1 of disability (lost time) expenses paid for a workers compensation claim OSHA estimates that you also incur between $2 and $10 in indirect workers compensation costs.
When corporate executives were surveyed in January, 2005 by a major insurance company, two out of every three estimated their company’s average ratio of indirect workers compensation costs to direct costs (premiums) for a worker injury claim to be at least 2:1. Unfortunately indirect workers compensation costs are rarely taken into account by most business owners and financial mangers because they are not easily identified. The difficulty is in accurately measuring this financial impact, and obtaining reliable information on which business owners and financial managers can deploy scare resources to minimize these costs. However, designing a safety program around the credible quantification of your organization’s TOTAL COST of worker injuries is the more effective way of reducing short-term and long-term costs. Also, if injuries do still occur, organizations are finding that aggressive workers compensation claim management practices that include a prompt injury response and return to work programs can significantly reduce the financial waste resulting from workers compensation claims.
Now you can quickly estimate your TOTAL COST of workers compensation injuries using OSHA’s industry estimates. To access our FREE, on-line total cost estimator go to www.comperaser.com today. It takes only a couple minutes and the results will surprise you.
CompEraser is the only service in the marketplace that will calculate your TOTAL COST of worker injuries using your own financial data. Therefore, while our TOTAL COST estimator is an excellent guide, our service takes the quantification of worker injury costs to a far greater level. CompEraser also comes with on-line, on-demand resources needed to reduce your TOTAL of worker injuries. These resources include the formalization of your safety team, injury prevention, OSHA compliance, safety training, prompt injury response, workers compensation disability management, plus more. These resources are available 24/7 and used irrespective of which workers compensation carrier you select. Its patent-pending technology also provides unique financial reports for monitoring the effectiveness of your safety and health program on an on-going basis. For more information visit our website at www.CompEraser.com.
