Costs of a poor Health & Safety culture

Health-and-Safety

Direct costs are easy to calculate and often insurable by business.

Indirect costs are the ones that you need to seriously take into consideration and be aware of. They are harder to calculate and prepare for and tend to be uninsured. They include:

  • Lost time or time away from the job not covered by workers’ compensation insurance
  • Extra wages including overtime working, temporary labour and training, payment to other workers who were not injured, for example those who stopped work to look after or help the injured worker and those who require output from the injured in order to complete their tasks
  • Sick pay
  • Production delay and the cost of overtime imposed by the accident (lost production, additional supervision, and additional heat, light, etc.)
  • Fines
  • Loss of contracts or inability to fulfil contracts
  • Legal costs
  • Damage to products, plant, buildings, tools, equipment
  • Clearing the site
  • Management time spent caring for the injured, investigating the accident, and supervising the activities necessary to resume the operation of business: Subsequent drop in productivity of the management team
  • Excess on any insurance claim/s
  • Loss of business reputation
  • Loss of expertise and experience
  • Costs brought about from any enforcement action following the accident such as prosecution fines and costs of imposed remedial works