Cost of Accident

Workplace injuries are unavoidable, especially in physical work environments such as construction sites or plant floors. While employers can never truly eliminate all workplace risk, they can take steps to mitigate accidents and injuries, through implementing administrative and engineering controls and requiring (and providing) PPE where necessary. Of course, for these tactics to succeed, they must be communicated to employees and then enforced. This could require a cultural shift that employs practical, methodical, and ongoing efforts on the part of management.

Given the costs of a typical slip and fall, it’s inexplicable that some companies back-burner safety measures due to cost-reduction initiatives. The best money a company can spend may be on PPE, training, safety programs, and similar tools. While those costs may seem excessive at the time, saving tens or even hundreds of thousands of dollars in indirect costs after a single employee accident makes the safety precautions well worth the investment. According to the National Safety Council, Injury Facts 2014 Edition, studies have shown that $1.00 invested in injury prevention returns between $2.00 and $6.00 to the employer.

Given the high — and often hidden — costs of accidents, employers must be diligent in acting to prevent those incidents through training, signage, and adequate safety equipment, as well as putting in place robust Workers Compensation and property casualty insurance programs.