MEASURING THE TRUE COST OF ACCIDENTS
The human cost is immeasurable, and the cost to businesses incredibly high.
• $1 per $100 of economic activity goes to injury and illness insurance premiums.
• $5-$50 per $100 is lost on ledger costs of property damage to plant machinery, equipment, etc.
• $1-$3 per $100 is lost on uninsured miscellaneous costs, such as time off and overtime and lost productive time as a result of accidents. Decreased output of injured workers upon return to work – light duties, etc.
That amounts up to a potential of $54 per $100 of economic activity, on ‘hidden’ accident costs!
A company may need to at least double turnover to recover lost profits.
"…our evidence suggests that companies that implement effective safety and health can expect reductions of 20% or greater in their injury and illness rates and a return of $4 to $6 for every $1 invested..." American Society of Safety Engineers