Guest post by James Pryor.
Indirect costs are 4 to 10 times the actual direct costs of an accident or serious OSHA violation.
We all know the direct cost of a failed safety program – an accident that results in Fines, Medical Costs, Temporary Total Disability, Permanent Partial Disability, Penalty Ratings on Workers Comp, and increased Actuarial Fees.
But what are the indirect costs?
But here are 7 indirect costs to consider the next time you think that safety training isn’t worth your time:
- Accident Investigation
- Additional Training
- Replacement Wages including benefits, pension, social security, unemployment and workers compensation premiums
- Production slow down
- Equipment damage, replacement and associated costs
- Miscellaneous costs such as customer perception
Indirect costs plus direct costs have been estimated to be as much as 1% of total sales.
Thats about $10,000 per $1,000,000 in Sales.
What else can you invest in today that will have such an impact on your shop’s bottom line?