Home Contact Us
Search Our Site
 

Policyholder Login
Agent Login
Overview  Automotive Safety  Construction Management  Liability  Occupational Safety  Safety Grant  Small Business 
Safety Management — Computing Your Firm's Incidence Rate Back
In the field of safety, an incidence rate is just a number that shows how many events (injuries and/or illnesses) occurred during a specified reporting period. Many firms and safety professionals use incidence rates to analyze the quality of safety in a given firm as compared to industry averages. Incidence rates take on more meaning for a firm when its injury and illness experience is compared with that of other firms doing similar work with workforces of similar size.

Information available from the Bureau of Labor Statistics (BLS) permits detailed comparisons of injury rates by industry and size of firm. The BLS has developed a formula to help firms evaluate their injury and illness records. The formula uses a common base and time period to allow firms to determine problem areas and progress in preventing work-related injuries and illnesses.

An incidence rate of occupational injuries and illnesses can be calculated using this formula:

     Number of nonfatal injuries & illnesses x 200,000      =      Incidence rate
     Number of hours all employees actually worked

Number of nonfatal injuries and illnesses — Count the number of OSHA-recordable cases for the year from the Log and Summary of Occupational Injuries and Illnesses, which companies are required to keep as part of OSHA recordkeeping requirements. This will include all nonfatal injuries and illnesses with lost workdays, and injuries and illnesses without lost workdays.

The number of hours all employees actually worked — Do not include vacation, sick leave or holidays. If actual hours worked are not available for employees paid on commission, by salary or by the mile, hours worked may be estimated based on scheduled hours or 8 hours per workday.

The 200,000 in the formula represents the equivalent of 100 employees working 40 hours per week, 50 weeks per year, and provides the standard base for the incidence rates.

The above description includes all incidents/accidents. Firms also can use the same formula to compute incidence rates for just lost workdays or for non-lost workday cases.

Example — A corrugated and solid fiber box manufacturing plant has a Standard Industrial Classification (SIC) code number of 2653. It has 300 employees who accumulated 600,000 hours of actual work as taken from time sheets. Management has excluded vacation and sick time from the total hours worked. The firm had 45 injuries for the year that is logged on their OSHA recordkeeping sheet. The firm would like to examine how well they are controlling their worker accidents in comparison to the national average.

Putting the numbers into the equation:

     45 injuries     x     200,000          =          15
     600,000 hours actually worked

If the firm goes to the BLS Web site, they can check out the national average for businesses with the same SIC code. For the year 2000, the national average was 6.6 and would indicate this firm is doing worse than average, and they should seriously consider changes to their safety program.

COPYRIGHT ©2002, ISO Services Properties, Inc.

 
  Find an agent for
  Personal Insurance
  Business Insurance
  Fidelity/Surety Bonds
 My ZIP code is
Privacy  Corporate Governance
All material protected by copyright   © 2008 Penn National Insurance
Penn National Insurance is an Equal Employment Opportunity/Affirmative Action employer