Definition - What does Incidence Rate mean?
An incidence rate (also known as an accident rate) is a way of measuring the safety of a workplace. It also helps companies determine whether the safety programs they have implemented are working. The rate is calculated based on the number of accidents that happen during a particular period of time.
Insuranceopedia explains Incidence Rate
The incidence rate reveals how safe the working conditions are. It also gives the company an indication of whether they need to improve or upgrade their safety measures.
The Occupational Safety and Health Agency (OSHA), the federal agency that establishes safety regulations for workplaces, has a formula for calculating incidence rates. To determine the accident rate in a workplace, start by multiplying the number of accidents by 200,000. Then divide the result by the number of labor hours.
Incidence rates are relevant to insurers because they can serve as a basis for calculating the premium for accident insurance.
How Well Do You Know Your Life Insurance?
The more you know about life insurance, the better prepared you are to find the best coverage for you.
Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.