No one likes to think they run a dangerous workplace. Health and Safety has improved immeasurably over the last decade, and although it is often the butt of jokes, the real cost of workplace accidents, means it’s not a laughing matter.
Terry Walker, Health and Safety expert explains below about how the costs of getting it wrong soon add up.
“Most organisations do not know what accidents and ill-health really cost them in time and money. Few companies examine costs as part of their accident investigation,” says Terry.
“It is often assumed that accident costs are recoverable through insurance. The Health and Safety Executive however estimates that uninsured losses are ten times the cost of those insured with uninsured losses from accidents in smaller firms averaging £315 per employee, per year.”
Uninsured costs can include:
- Lost time and sick pay
- Damage or loss of product and raw materials
- Repairs to plant and equipment
- Extra wages, overtime working and temporary labour
- Production delays
- Investigation time
- Fines & Legal costs
- Loss of contracts
“Accident and ill-health costs are similar to an iceberg: with recoverable costs being visible but those that are unrecoverable being hidden below the waterline and many times greater.”
Other key points to consider are;
- Losing key personnel due to injury or ill-health can lead to missed deadlines and loss of customers
- In small companies a serious accident or an incident such as fire can lead to the loss of the business
- Loss of business reputation due to accidents and enforcement action can lead to loss of new or repeat business
- Accidents can damage workforce morale and affect productivity
- Serious accidents leading to injury may be rare but minor incidents leading to costly damage are happening much of the time
- Accident claims invariably mean higher premiums or cover actually being refused
Terry helps firms don’t suffer unnecessary losses. But there’s more to it than that.
“It’s important to make sure your employees don’t suffer unnecessary injury or ill health while at work. Identify the hazards, evaluate the risk and take ACTION to remove significant hazards or reduce the risk to low levels. Health and safety management is like any other function in your business. If managed well, the business will reap the benefits of better employee morale, employee commitment, better communications, increased efficiency, enhanced reputation, reduced costs and legal compliance.”
If you are need help with your health and safety. Please contact Terry, Walker & Walker on +44 (0)1189 697 790, email: firstname.lastname@example.org or via our website http://www.walkerconsultingltd.co.uk/contact-us