Industrial Injury Cost Analysis by Occupation in an Electric Utility

Abstract

The objective of this study was to establish a cost base of industrial injuries by occupations at the Southern California Edison Company (SCE). The cost base is a risk management tool to project future costs of current injuries by occupation. It provides an estimation of anticipated cost for use in strategic program development. The SCE workers' compensation database of industrial injuries was used in this study. Cost data from 1980 to 1987 were converted to 1993 dollars. Several years must elapse for the total cost data to accrue for complex medical lost time injury cases. The total average cost per injury for the 46 occupations was $5173. The occupational total average injury cost range was $300-$19 500, a difference in total average injury cost of more than $19 000. The costing model developed included three major cost categories: lost productivity, medical, and indemnity. It is a conservative estimate of the actual cost of an average injury event. Reducing injury rates in high total average injury cost occupations offers the maximum potential for cost savings.