It has long been known that indirect costs of a workplace accident are several times higher than direct costs. According to a post by First, Verify (https://www.firstverify.com/fv-blog-the-hidden-costs-of-ignoring-safety-at-the-workplace-first-verify) as much as 90% of workplace injury and illness costs are hidden.
According to NIOSH, the total cost of occupational deaths and injuries is $192 billion annually. Besides the direct medical costs, here is what is included:
- Replacing damaged tools and equipment.
- Disruption of work - caring for injured worker, filing injury report, investigation etc.
- Lost orders or billing opportunities.
- Failure to meet production deadlines.
- Hiring and training replacement or temporary employees.
- Loss of sales.
- Increased workers compensation insurance and employee benefits cost.
- Loss of reputation due to multiple injuries, illnesses or fatalities can lead to difficulty in hiring, loss of customers.
The best way to avoid the cost of workplace accidents is to prevent them from happening.