ARMS "A Safer Place to Be!"

Cost of Loss

In today’s economy, businesses and municipalities need every advantage to be competitive in the marketplace. When a company, city, or county pays higher than necessary Workers’ Compensation premiums, that fact is directly reflected in their cost of doing business – and who has money to throw away these days? Consider the following Cost of Loss averages:

Cost of Loss


Injury Average Claim Cost Average Time Off
Carpal Tunnel Syndrome $75,000* 8-10 weeks
Soft-Tissue Back Injury $80,000** 6 weeks – 6 months
Back Injury – Neurological
$90,000 12-15 weeks
Back Injury – Neurological
$130,000*** 20-30 weeks
Loss of a Limb – 21 weeks****
Finger $18,000
Thumb $25,000
Hand $35,000
Arm $60,000
Leg $85,000

Table 1 –

* Cost shown for Carpal Tunnel is per hand. However, cases often involve both hands.

** Soft tissue back injuries almost always lead to future claims.

*** Neurological back injuries (Surgical) often lead to future claims, with Re-training and Wage Differentials of $200,000 to $250,000. Settlements, plus TTD & Medical average $380,000, and can be as high as $500,000 per claim.

**** Wage Differential for Loss of Finger, Thumb, or Hand average an additional $79,250 per occurrence on top of Workers’ Compensation Claim. For Loss of Arm or Leg, the average additional Medical and TTD is $88,250.

Despite these Cost of Loss averages, Absolute Risk Management Solutions professionals’ unique approach to Risk Management helps our Clients actually manage and reduce your Workers’ Compensation and Loss Time Injuries claims. In fact, ARMS Clients have enjoyed as high as a 29% reduction in their Workers’ Compensation and Liability premiums over previous periods.

In addition to money paid in Workers’ Compensation Claims, Medical, and TTD, Workers’ Compensation losses can contain many hidden costs. But just because you can’t see them does not mean that they don’t hurt your business. Here is the real impact:

If you operate your business at a 5% profit margin, and you incur a $250,000 Work Comp Loss, your company would need to generate $5,000,000 in revenue to make up that loss.

Cost Incurred $250,000
Your Profit Margin x $ 5%
Total               $5,000,000

That’s $5,000,000 in revenue for the equivalent of a soft-tissue back injury, a carpal tunnel case, and the cost of a replacement worker and medical costs. But that’s also exactly where Absolute Risk Management Solutions can help your business!

Call Absolute Risk Management Solutions today to receive your Free Consultation, and find out how ARMS can help make your business “A Safer Place to Be!”