Abstract

The results of a preliminary investigation (RS-86-37) indicate that the ratio of direct to indirect costs could constitute a useful index of the true indirect costs of occupational accidents to employers.

A postal questionnaire was sent to 583 companies with at least 100 employees in the CSST's three high-priority sectors; in all 1 400 questionnaires were sent. The response rate was 26.5%. Responses to 25 individual elements were analyzed under five main headings, including salary at the time of the accident, material damages, and production losses.

The results indicate that on average, indirect costs of accidents are 83% of the direct costs ($1,156 vs $1,391). The report contains approximately 100 tables which employers can use to reliably estimate indirect costs of accidents. Two other studies, conducted in parallel, validated this model.

Alerted by the results of this study to the magnitude of indirect costs of occupational accidents, management can implement measures designed to prevent accident and reduce total accident costs.