The fearsome hidden cost of accidents

The cost of accidents:

It is said, “If you think safety is to expensive, try accident”.

Accident is not part of the puzzle when we say experience is the best teacher. As far as accident is concern; experience is the worst teacher.

What makes accident more fearsome is that its consequence are always unpredictable. For instance; someone falls from a height of about 8 meters and has just a fractured toe, whereas someone else falls from about 5 meters height and break his neck.

So, you can agree with me that the consequence of accident is unpredictable.

The cost of accidents is one thing most of our employers still fails to understand. The tend to be more comfortable with the direct cost of accidents, because that is the only side they see. They believe that insurance will cover it.

But the main trouble of accident is the hidden cost.

Let me explain what hidden cost of accidents means to you as an employer and to your business:

Hidden cost of accident are indirect cost, invisible cost, uninsured cost, non-quantifiable cost. The direct cost of an accident is seen as a tip of an iceberg when compared to the hidden cost of accident. Some assessment believes that to every $1 direct cost of an accident, there is a $3 hidden cost attached.

Let me  pause here to give you a highlight of indirect cost of accidents:

• Time lost from work by injured employee(s)
• Loss in earning power

• Loss of production
• Spoilage – fire, water, chemical, explosives, etc.
• Failure to fill orders
• Economic loss to injured worker’s family
• Lost time by fellow employees
• Loss of efficiency due to break-up of crew
• Lost time by supervision
• Damage to tools, equipment, and other property
• Time lost for replacing damaged equipment
• Spoiled work
• Overhead cost (while work was disrupted)

• Cost of training a new worker

• Workers’ compensation premium

To employers: Accident is too costly to be taken lightly, do not depend on your insurance package. You insurance do not cover up to 50% of the total cost of accident.

So when talking about accident; Prevention is better and cheaper than cure.

Safety tips to prevent accidents

  • Never relegate safety to the background
  • Do not practice safety just to fulfill all righteousness
  • Do not practice safety of convenience
  • Work with your Health and Safety personnel to proffer timely solutions to health and safety issues
  • Live by example
  • Show commitment from the top

Safety is too important to be treated carelessly; BE WISE.

 

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