Friday, October 13, 2006

The cost of accidents

There is a well known saying "if you think safety is expensive, try having an accident." This can be a convincing argument for investment beyond the basic moral responsibility.

If someone is injured and unable to work, or killed, an organisation is likely to face some or all of the following costs:

* Compensation
* Fines
* Legal costs in defence of a prosecution
* Paying overtime or hiring extra people to provide cover
* Lost production
* Repair costs
* Loss of reputation
* Increased insurance premiums

Whilst some of these costs can be insured against, studies suggest most cannot. The trouble with this argument is that before an accident has occurred, these costs are hypothetical, whilst the cost for improving safety is very real.

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