What are good health and safety practices in the workplace?. When accidents and ill health occur, it will cost your business money, many of these losses cannot be insured against. The financial impact of accidents and ill health can have significant effects on the profitability of your organisation and in some cases can lead to bankruptcy.
There will be indirect costs which you may not have considered, which cannot be insured against such as –
Loss of staff from productive duties to attend Court, investigate the incident, prepare reports, undertake hospital visits and deal with relatives.
Loss of staff morale – impacting productivity and efficiency.
Costs of remedial action post investigation e.g., a change of process or materials and / or the introduction of further control measures.
Compliance with any enforcement notice served.
Cost of recruiting, training and employing replacement staff
Difficulties in that recruitment process due to knowledge of the accident which has occurred.
Loss of goodwill of customers following delays in production or services.
Penalty clauses enforced due to failing to meet deadlines.
Damage to your organisations public image and business reputation.
Damage to industrial relations, perhaps leading to industrial action e.g. Strikes.
There will be direct and measurable costs involved such as –
Fines in the Criminal Court.
Compensation payable to the victim (likely to be met by insurance cover which in turn will result in higher insurance premiums).
Costs associated with the rehabilitation of the injured employee / contractor / person.
Lost production time whilst dealing with the injury & overtime to make up for it.
Lost and damaged product.
repairs & replacement of damaged equipment and buildings.
First aid treatment and sick pay.
If you want to find out more about good health and safety practices in the workplace get in touch.