Publications consulted
Costs overview
Health and Safety Executive, 1999. The costs to Britain of workplace accidents and work-related ill health in 1995/96, second edition, HSE Books, ISBN 0 7176 1709 2.
Office of National statistics, Labour Force Survey 2000/01.
Health and Safety Executive, 1997. The costs of accidents at work, HS(G)96, second edition, HSE Books, ISBN 0 7176 1343 7.
Health and Safety Executive, 2003. Self-reported work-related illness in 2001/02: results from a household survey , HSE Books.
Department of the Environment, Transport and Regions, 1998. Rethinking construction: the report of the construction task force, DETR, ISBN 1 85112 094 7.
O'Riley M K, Corporate Governance: facing an uncertain future, Director, June 2001.
Safety Science Vol 31 No 1, Monnery N, The costs of accidents and work-related ill-health to a cheque clearing department of a financial services organisation, p59-69 (1999) with permission from Elsevier Science.
Dugdill L et al, The development and uptake of health and safety interventions aimed at small businesses, Health Education Journal (2000) 59, 157-165.
Health and Safety Executive, 1999. Good health is good business – employers guide, HSE Books, MISC196.
Financial Times guide, November 1996. Health in the workplace – Health and safety at work.
Gwyther R, November 2000, The Frank Davies project: health protection and accident prevention as business imperatives in the water industry, South West Water.
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Injury costs
Office of National statistics, Labour Force Survey 2000/01.
Carter R L, 1992. Accident costing, 6.4-01-6.4-12, Handbook of Risk Management, Kluwer Publishing Ltd. Updated by private communication with L Bamber.
Health and Safety Executive, 1999. The costs to Britain of workplace accidents and work-related ill health in 1995/96, second edition, HSE Books, ISBN 0 7176 1709 2.
Bird F E, 1974. Management guide to Loss Control, Institute Press, Atlanta, Georgia, USA.
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Accident costs: work out yours
Health and Safety Executive, 1997. The costs of accidents at work, HS(G)96, second edition, HSE Books, ISBN 0 7176 1343 7.
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Accident costs: annual accident calculator
Office of National statistics, Labour Force Survey 2000/01.
Health and Safety Executive, 1999. The costs to Britain of workplace accidents and work-related ill health in 1995/96, second edition, HSE Books, ISBN 0 7176 1709 2.
Bird F E, 1974. Management guide to Loss Control, Institute Press, Atlanta, Georgia, USA.
Tye J Accident ratio studies 1974-1975 British Safety Council 1976
Health and Safety Executive, 2001. Health and safety – statistics 2000/01. HSE Books, ISBN 0 7176 2110 3.
Carter R L, 1992. Accident costing, 6.4-01-6.4-12, Handbook of Risk Management, Kluwer Publishing Ltd. Updated by private communication with L Bamber.
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Accident costs: incident cost calculator
Office of National Statistics, 2003. Monthly digest of statistics No 689 May 2003. The Stationery Office.
Health and Safety Executive, 1999. The costs to Britain of workplace accidents and work-related ill health in 1995/96, second edition, HSE Books, ISBN 0 7176 1709 2. (wage costs updated by private communication).
Office of National Statistics, Labour Force Survey 2000/01.
Health and Safety Executive, 2003. Self-reported work-related illness in 2001/02: results from a household survey , HSE Books.
Health and Safety Executive, 2001. Health and safety – statistics 2000/01. HSE Books, ISBN 0 7176 2110 3.
Health and Safety Executive, 2001, Accident investigation. The drivers, methods and outcomes. Contract Research Report 344/2001. HSE Books ISBN 0 7176 2022 0.
Department of Health, 2002. Hospital in-patient data based on Hospital Episode Statistics: Tables 3 and 11. DOH website.
Health and Safety Executive. Health and Safety Offences and Penalties. A report by the Health and Safety Executive. (Available on HSE website).
Chartered Institute of personnel and Development, 2002. "Labour turnover: survey report". October 2002.
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Ill-health costs
Health and Safety Executive, 2003. Self-reported work-related illness in 2001/02: results from a household survey, HSE Books.
Health and Safety Executive, 1999. The costs to Britain of workplace accidents and work-related ill health in 1995/96, second edition, HSE Books, ISBN 0 7176 1709 2.
Health and Safety Executive, 1999. Good health is good business – employers guide, HSE Books, MISC196.
Managing sickness absence essential, Safety Express, November/December 2001.
Confederation of British Industry and PPP healthcare, 2001. Pulling together – 2001 absence and labour turnover survey, CBI, ISBN 0 85201 553 4.
Gwyther R, November 2000, The Frank Davies project: health protection and accident prevention as business imperatives in the water industry, South West Water.
Forum of Private Business/Backcare, October 2000. Back strain in UK small businesses – analysis of survey responses to the Forum of Private Business Quarterly Report (LBO 59 – Quarter 3 2000).
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Ill-health cost calculator
Trade Union Congress leaflet, Stop the drain.
Health and Safety Executive, 2003. Self-reported work-related illness in 2001/02: results from a household survey, HSE Books.
Health and Safety Executive, 1999. The costs to Britain of workplace accidents and work-related ill health in 1995/96, second edition, HSE Books, ISBN 0 7176 1709 2.
Chartered Institute of personnel and Development, 2002. "Labour turnover: survey report". October 2002.
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Explanation of annual accidents calculator methodology
Method 1
Calculation:
Uninsured costs per year = |
insurance premiums paid per year x 10 |
Explanation:
HSE undertook a series of case studies as reported in the publication
'Costs of accidents at work'. These provided a range of ratios for the
insurance premiums paid against the uninsured costs sustained by a company through accidents over the same period.
The ratios ranged from 1:8 to 1:36. That means for every £1 paid by the company in insurance premiums, a further
£8 of uninsured losses were incurred which the company had to meet.
The ratio 1:10 has been taken as a representative value.
The case studies were undertaken using a total loss approach. This meant that the definition
of an accident included all possible losses, including loss of business opportunities, for an event
irrespective of actual harm or potential of harm to a person.
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Method 2
Calculation:
Uninsured costs per year = |
Number of employees in organisation x average cost of accidents per employee per year |
where average cost of accidents per employee per year is £335.
Explanation:
The uninsured costs of accidents in an organisation can be averaged over the number of employees in it,
to give an easy to use way for calculating the total uninsured costs. For example if you had 10 employees,
the annual uninsured loss would be 10 x £335 = £3350.
The value of £335 comes from a study undertaken by Lawrence Bamber
and has been uprated for the increase in the Retail Price Index since the study was originally undertaken.
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Method 3 – version 1
Calculation:
Uninsured costs per year = |
(Number of 'over 3 day' injury accidents per year x average cost per 'over 3 day' accident)
+ (number of first aid accidents per year x average cost per first aid accident)
+ (number of 'damage only' accidents per year x average cost per 'damage only' accident) |
| where |
| |
| | | average cost of 'over 3 day' accident is | | £2234 |
| | | average cost of first aid accident is | | £35 |
| | | average cost of 'damage only' accident is | | £151 |
Explanation:
This calculation is used where the number of the three different accident types are all known
to the user.
For example if you had 1 'over 3 day' accident, 2 first aid accidents and 3 'damage only'
accidents, the cost would be: (1 x £2234) + (2 x £35) + (3 x £151) = £2757.
The average costs of accidents can be determined through a costings study for different types
of accidents, to produce a representative cost for each accident type.
The values of £2234, £35 and £151 come from a study undertaken by Lawrence Bamber
and uprated for the increase in the Retail Price Index since the study was originally undertaken.
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Method 3 – version 2
Calculation:
Uninsured costs per year = |
(Number of 'over 3 day' injury accidents per year x average cost per 'over 3 day' accident)
+ (number of first aid accidents per year x average cost per first aid accident)
+ (number of 'damage only' accidents per year x average cost per 'damage only' accident) |
| where |
| |
| | | average cost of 'over 3 day' accident is | | £2234 |
| | | average cost of first aid accident is | | £35 |
| | | average cost of 'damage only' accident is | | £151 |
and
the number of the three different accident types are calculated from nationally collected statistical
data. These are calculated as follows:
Number of 'over 3 day' injury accidents per year = NR'over 3 day' x CF x NE
where
NR'over 3 day' = accident rate per 100 000 workers of 'over 3 day' accidents reported (to HSE);
CF = factor to correct for degree of underreporting of accidents; and
NE = number of employees in organisation
The calculator will automatically look up values for NR'over 3 day' and
CF from the information you provide.
For example, if NR'over 3 day' = 2500, CF = 1.5 and NE = 200, then
Number of 'over 3 day' injury accidents = (2500/100 000) x 1.5 x 200 = 7.5
'over 3 day' accidents per year.
So the calculator would assume you to have 7.5 'over 3 day' accidents per year.
Number of first aid accidents per year = NR'over 3 day' x CF x NE x Rfirst aid
Where
NR'over 3 day' = accident rate per 100 000 workers of 'over 3 day' accidents reported (to HSE);
CF = factor to correct for degree of underreporting of accidents;
NE = number of employees in organisation; and
Rfirst aid = ratio of number of first aid accidents to number of 'over 3 day' accidents derived from statistical studies.
(The two values of Rfirst aid,used from different studies, are 10 and 17. For example if you had 1 'over 3 day' accident,
the calculator would predict you would have between 10 and 17 first aid accidents.)
For example if, NR'over 3 day' = 2500, CF = 1.5 and NE = 200, then
Number of first aid accidentsestimate 1 |
= (2500/100 000) x 1.5 x 200 x 10
= 75 first aid accidents per
year |
| | |
Number of first aid accidentsestimate 2 |
= (2500/100 000) x 1.5 x 200 x 17
= 127.5 first aid accidents per
year |
So the calculator would assume you to have between 75 and 127.5 first aid accidents
per year.
Number of 'damage only' accidents per year = NR'over 3 day' x CF x NE x Rdamage
where
NR'over 3 day' = accident rate per 100 000 workers of 'over 3 day' accidents reported (to HSE);
CF = factor to correct for degree of underreporting of accidents;
NE = number of employees in organisation; and
Rdamage = ratio of number of 'damage only' accidents to number of 'over 3 day' accidents derived from statistical studies.
(The two values of Rdamage used are 27 and 30. For example if you had 1 'over 3 day' accident, the calculator would predict
you would have between 27 and 30 'damage only' accidents.).
For example, if NR'over 3 day' = 2500, CF = 1.5 and NE = 200, then
Number of 'damage only' accidentsestimate 1 |
= (2500/100 000) x 1.5 x 200 x 27
= 202.5 'damage only' accidents per year |
| | |
Number of 'damage only' accidentsestimate 2 |
= (2500/100 000) x 1.5 x 200 x 30
= 225 'damage only' accidents per year |
So the calculator would assume you to have between 202.5 and 225 'damage only' accidents per year.
Using the above figures:
- the cost of the 'over 3 day' accidents per year = 7.5 x £2234 = £16 755.
- the cost of first aid accidents per year would be between (75 x £35) and (127.5 x £35) ie between £2625 and £4462.50 per year; and
- the cost of 'damage only' accidents per year would be between (202.5 x £151) and (225 x £151) ie between £30 577.50 and £33 975 per year.
The calculated total uninsured costs per year would, therefore, be between £49 957.50 and £55 192.50.
Explanation
This calculation method is used where the number of the three different accident types are unknown
to the user.
The average costs of accidents can be determined through a costings study for different types of accidents,
to produce a representative cost for each accident type.
The values of £2234, £35 and £151 come from a study undertaken by Lawrence Bamber
and uprated for the increase in the Retail Price Index since the study was originally undertaken.
To estimate the number of the three different accident types in an organisation, the calculator makes
some assumptions. This is by using statistical data to model the organisation's performance.
The calculator automatically looks up the relevant reportable 'over 3 day' accident rate from a reference
table using information supplied by the user. This reference table holds the 'over 3 day' accident rate averaged
over a three year period to eliminate any wide fluctuations in the data. The rate is averaged over 1998/99,
1999/2000 and 2000/01 data.
Not all 'over 3 day' accidents are reported by employers to the relevant enforcing authority. This is known
as underreporting of accidents. To estimate the number of 'over 3 day' accidents in the organisation a correction
factor is used to compensate for the underreporting. This is derived from the Labour Force Survey and accident data
reported under RIDDOR 1995.
Estimates are then made of the number of types of first aid and 'damage only' accidents that the organisation has.
These are made by using accident triangle data derived from F E Bird
and separately by the British Safety Council. Using two different studies gives a
range of predictions to better encompass the number of accidents the organisation might have.
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