How much does a work related accident cost?

Many companies are ignoring the health and safety aspects of their business. Maybe because they don't understand yet the impact of this in their business. Or maybe they don't realized that work related injuries are more expensive than what they thought.

Here are some benefits of an effective health and safety programs

• reduces work related injuries and illnesses
• improved morale and productivity
• reduces work compensation cost

Health and safety programs are therefore recommended for all general industries. 

Here are some obvious cost (direct cost) from work related accidents:

1. Medical cost
2. Compensation cost (insurance)
3. Building damage
4. Tool and equipment damage
5. Product and material damage
6. Emergency supplies expense
7. Repair and replacement cost

Now, here are the HIDDEN cost (indirect cost) from work related accidents

1. Investigation time
2. Wages paid for time lost
3. Cost of hiring and retraining
4. Overtime
5. Extra supervisory time
6. Clerical time
7. Decreased output due to accident
8. Increased absenteeism
9. Lower morale of the employees
10. Loss of business or goodwill due to poor customer relations 

So businessmen should think twice in ignoring to implement a health and safety programs in their company.