Every accident at work has a cost associated with it and that is why it is important to manage safety on the job.
How Much Does an Accident Cost?
The HSE reckon that ill health caused by work can cost over two times more than an accident causing an injury.
The smaller your business, the bigger the impact will be if you have a serious incident. It could even put you out of business.
The costs that are involved are both direct and indirect; however the employee who was injured will be the one who pays the most. The costs associated with an accident are always more then just pounds and pence.
Direct Costs for the Employee
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Lost wages and overtime
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Indirect costs for the employee
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Physical pain and suffering
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Mental anguish
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Lost time with family and friends
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Loss of productivity on and off the job
Direct Costs for the Employer
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Sick pay
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Worker compensation claims including legal costs
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Insurance premiums
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Equipment, tools, plant, products or property damage requiring repair/replacement
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Overtime pay for other works to catch up
Indirect Costs for the Employer
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Loss of a valued employee
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Production delays
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Failure to fill orders and meet deadlines
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Lost time on accident investigations by management
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Replacing the lost worker leading to subsequent hiring/training costs
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Knock on effect for co workers reducing morale
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Loss of business reputation
Insurance policies do not cover everything and may only pay for serious injuries or damage. All other costs will have to be met by the employer.
Remember, accidents and ill health caused by work cost time and money.
You cannot insure against all the costs arising from these and they can have a dramatic impact on your business. But you can prevent them, saving you time and money.
