Costs Worksheet

Company Safety Programs

What Are Your Off-The-Job Accident Costs?

Print this worksheet and use it to calculate your annual costs. The answer will surprise you. Your claims administrator can provide the medical expenses by summarizing data for codes (800-999) shown below.

Summary Of Off-The-Job Accident Costs

Medical Expenses for employees	$
Medical Expenses for dependents
Wages Paid to injured employees
Benefits Paid to injured employees
Claims Administration costs
Costs to train replacement workers
Reduced productivity
Lost sales
Other



TOTAL COSTS	$

Divide these costs by your company's pre-tax profit margin to determine the revenue that is needed to pay for off-the-job accidents.
For example, if a company has $1 million in off-the-job accident costs, and the pre-tax profit margin is around 10%, the company needs $10 million in revenue just to pay for off-the-job accidents to employees and their families.

Types Of Injury And Poisoning*

800-829 - Fractures
830-839 - Dislocations
840-848 - Sprains and strains of joints and adjacent muscles
850-854 - Intracranial injury, excluding those with skull fracture
860-869 - Internal injury of chest, abdomen and pelvis
870-897 - Open wound
900-904 - Injury to blood vessels
905-909 - Late effect of injuries, poisonings, toxic effects and other external causes
910-919 - Superficial injury
920-924 - Contusion with intact skin surface
925-929 - Crushing injury
930-939 - Effect of foreign body entering through orifice
940-949 - Burns
950-957 - Injury to nerves and spinal cord
958-959 - Certain traumatic complications and unspecified injuries
960-979 - Poisoning by drugs, medicinal and biological substances
980-989 - Toxic effects of substances chiefly nonmedicinal as to source
990-995 - Other and unspecified effects of external causes
996-999 - Complications of surgical and medical care not elsewhere classified

*Incidents are classified on the basis of the Ninth Revision of the International Classification of Diseases (ICD).

Basic Steps In Determining Off-The-Job Accident Costs
Medical Expenses
Your Claims Administrator can furnish total Medical Expenses from an annual summary of ICD-9 codes.
Determine Medical Expenses for employees and dependents from annual summary, if possible. Otherwise, assign Medical Expenses to employees and dependents based on ratio of employees to total number insured.

Wages Paid To Injured Employees
Step 1: Determine number of cases from annual summary, if possible. Otherwise, estimate number of cases by dividing total Medical Expenses for employees by average medical expenses per workers' compensation case.
Step 2: Estimate lost workdays by multiplying number of cases by average lost workdays per workers' compensation case.
Step 3: Estimate Wages Paid by multiplying lost workdays by average wages paid per day.
Benefits Paid To Injured Employees
Estimate Benefits Paid by multiplying Wages Paid by normal benefits percentage.
Claims Administration Costs
Estimate Claims Administration costs by multiplying number of cases by average cost per benefit case.

Other Costs
Estimate based on data from workers' compensation analyses, if available.

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