Costs of a poor Health & Safety culture

Organisations with effective HSE management systems tend to perform more successfully, this is reflected in some of world’s most profitable organisations. The also earn the confidence of their key stakeholders.

What would you do if a serious accident occurred involving a key worker ?

  • How would your business cope ?
  • What would the effects be ?
  • How would you counteract and manage these effects ?


Insurance policies don’t cover everything and may only pay for serious injuries or damage. All other costs will have to be met by the business. Just imagine the costs if your company was prosecuted…..

Now, let’s look at what these costs could be…..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 from enforcing bodies or courts
  • Loss of contracts or inability to fulfil contracts
  • Legal costs either direct to courts or to Legal Advisors
  • Damage to products, plant, buildings, tools, equipment
  • Clearing the site after any incident
  • 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


Corporate OHS also offers crisis management and business continuity services.


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