Tuesday, September 22, 2009

Cost of Accident to the company

The following is the cost to the company when an accident happens in the workplace:

1. Wages for the injured worker over the period.


2. Loss of production or remedial work required.


3. Overtime wages to cover lost production.


4. Wages for replacement worker.

5. Legal expenses.


6. Fines and court costs


7. Increase in Employees' Compensation Claims.

What are example of uninsured costs?


1. Lost time


2. Extra wages, overtime payments

3. Sick Pay


4. Production delays

5. Loss of contracts and legal costs


6. Damage to products, buildings or equipment


7. Investigation time


8. Loss of business or


9. Loss of business reputation


The cost of accidents and ill health only have real meaning when related to your business. You should compare them to your overall operating costs, or annual sales needed to cover them. Only then you can judge how significant they are.

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