Severity Rate

Published: | Updated: January 3, 2017

Definition - What does Severity Rate mean?

Severity rate is a mathematical method of counting the number of working days lost because of employee absences caused by incidents in the workplace. The rate can show how effective the safety standards are in a given working environment.

Insuranceopedia explains Severity Rate

The severity rate is calculated by adding the number of work days lost to light duty hours lost, multiplying the result by 200,000, and then dividing the product by total number of hours spent working.

The rate can reveal the success or the failure of a workplace's safety standards. A negative result can mean that those standards need to be redesigned to ensure a safer work environment.

Insurance companies may consider this rate when screening employers applying for insurance for their employees.

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