Severity Rate

What Does Severity Rate Mean?

The severity rate is a method used to calculate the number of working days lost due to employee absences caused by workplace incidents. This rate helps assess the effectiveness of safety standards in a given work environment.

Insuranceopedia Explains Severity Rate

The severity rate is calculated by adding the number of workdays lost to light duty hours lost, multiplying the total by 200,000, and then dividing the product by the total number of hours worked.

This rate can indicate the effectiveness of a workplace’s safety standards. A negative result may suggest that the safety measures need to be reevaluated and improved to create a safer work environment.

Insurance companies may also use the severity rate when evaluating employers who are applying for employee insurance coverage.