Zenith Insurance Company: Return On Safety Investment: Loss Reduction

There are many direct and indirect costs associated with any accident. Some of these are covered by workers compensation insurance, such as medical bills and temporary disability payments, but others must be covered by the business.

By entering some simple figures and estimating the reduction in claims resulting from the improvements, you can determine the payback period.

Please type in the following fields (Note: Do not use commas. Correct format: 12000; Incorrect format: 12,000). Fields with an asterisk (*) are required fields.

What are the direct costs of your claims that are covered by insurance? These include:

medical bills

temporary disability payments.

The amount can be found on your Risk Management Report (RMR) or loss runs.

* $

What are your indirect claims costs? These are the costs that aren't covered by insurance. Some of these indirect costs:

the price of the injured worker's time off from work

what it costs in overtime to make up for his absence

the time a supervisor spends on administrative duties after an accident

what it takes to train a replacement worker

What would it cost you to make your workplace safer by putting in place a safety program, updating equipment, etc?

* $

What percent of injuries would you expect to prevent if you made these improvements?

* %

Annual loss savings:

%	10%	30%	50%	70%
$	$	$	$	$

Payback period in years

(These numbers are intended to be hypothetical illustrations only and not to be relied on in making insurance coverage selection. Zenith does not guarantee these cost savings to your business.)