How Uninsured Worker Injury Cost Are Sucking Your Profits Dry, And What You Can Do About It

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Beware: Only 35% Of The Cost Of Worker Injuries Are Insured. The Rest Directly Hits Your Bottom Line

Have you fallen into the trap of linking insurance premium with total workers compensation costs? I ask this because, while insurance premiums are certainly important, ultimately the cost of your workers compensation program is a function of total economic impact of your claims - not insurance premiums.

Industry statistics consistently indicate that only 25 – 40% of the total cost of workers compensation claims are transferable to your insurance carrier. The remaining cost still hits your bottom line - and hits it hard – but are completely uninsured. These "uninsured costs" are the result of the marginal inefficiencies to your manufacturing or service process as a result of a workrelated injury.

Unfortunately uninsured costs are not taken into account by most business owners and financial mangers because they are not easily identified. Examples of such costs include:

• Worker and co-worker downtime
• Co-worker assistance
• Training replacement workers
• Damaged equipment
• Damaged products and materials

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CompEraser, Inc.