The actual cost of an injury or accident is usually much higher than you think!
Most Companies do not use proper cost analysis techniques to identify loss as a result of workplace accidents and injuries.
We all know about the direct costs, i.e. those covered by insurance (workers comp, motor vehicle, property, equipment, fire etc.), however it is the undisclosed or uninsured costs that are often overlooked and hidden amongst normal operating costs.
These overlooked costs can be very high, often higher than the known direct costs. Sure the process of collecting the information is time consuming but it is the only way to accurately measure the cost of accidents and injuries to a Company.
Here are a few items to think about including into your cost analysis:
- The costs of wages for time lost by people who are not injured (e.g. employees near the scene of the accident or who saw the accident)
- Repair or replacement of property (e.g. machinery that is not insured, materials, work in progress)
- Loss of production by the injured worker
- Cost of supervisors time
- Decreased output from the worker once they have returned to work
- Uninsured medical costs (e.g. first aid supplies)
- Cost of time to investigate accidents and incidents