Do You Know What Your Workers Compensation Claims Really Cost You? Find Out For FREE At www.CompEraser.com Today
Industry statistics consistently indicate that only 25 – 40% of the total cost of workers compensation claims is transferable to your insurance carrier. The remaining cost still hits your bottom line - and hits it hard – but is completely uninsured. These “uninsured costs” are the result of the marginal inefficiencies to your manufacturing or service process as a result of a work-related injury.
There have been past studies that have attempted to measure uninsured costs. Unfortunately, these studies are quite old and are general in nature. As an example, Terrance Miller, in his article “Track The True Cost of Accidents, Safety & Health, November, 1991:
“Uninsured costs are usually calculated from insured costs using a ratio. Fixed, arbitrary ratios such as 1-to-1, 4-to-1 or even 10-to-1 are sometimes used. However, uninsured costs vary so much from one operation to another, the only appropriate ration is one developed for your plant or company.”
The Occupational Safety & Health Administration (OSHA) also refers to these studies on their website, stating:
“Studies show that the ratio of indirect costs to direct costs varies widely, from a 20:1 to a low of 1:1.”
CompEraser’s own analysis of customer claims reveals that for every $100 if insured workers compensation claims the indirect workers compensation costs are $380. Unfortunately uninsured 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 safety and health practices 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.
Now you can estimate your TOTAL COST of worker injuries using OSHA estimates in the privacy of your office. It is on-line and available 24-7. To find out more go to www.comperaser.com. These resources also include 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.
