Direct And Indirect Costs Of Accidents At Work
When an accident occurs there are two types of costs that the organization may face:
1. Direct Costs
What are the Direct Costs?
Direct costs – the measurable costs arising directly from the accident.
- Fines in the criminal courts
- Compensation payable to the victim
- First aid treatment
- Workers sick pays
- Repairs to, or replacement of, damaged equipment and buildings
- Loss & damaged product
- Lost production time whilst dealing with the injury
- Overtime to make for lost time
- Cost associated with the rehabilitation of the injured worker and
- their return to work
2. Indirect Costs
What are the Indirect Costs?
Indirect costs – those which arise indirectly as a consequence of the event. Indirect costs are often difficult to quantify precisely and may be hard to identify.
- Loss of staff from productive duties in order to investigate the
- incidents, prepare reports & undertake hospital visits Etc
- Compliance with any enforcement notice served
- Lost of staff morale (which impact on productivity & quality Etc.
- Costs of remedial action following an investigation, e.g.
- change of process or materials
- Costs of recruiting and training temporary or replacement labor
- General difficulties in recruiting and retaining staff as an indirect result of the accident
- Loss of goodwill of customers following delays in production & fulfilling orders
- Damage to the public image and business reputation
- Damage to the industrial relations
Other Important Health and Safety Topics:
- How to Pass NEBOSH IGC In First Attempt?
- Guidance On NEBOSH Command Words / Action Verbs
- Why We Manage Health and Safety?
- Barriers In Promoting Good Standards Of Health And Safety at Workplace.
- National Government Contribution Towards Health and Safety
- Definitions Of Health, Safety, Welfare & Environmental Protection
Other Important Useful Links: