In the trucking industry we often talk about truck crashes, yet we have a lot of exposure to on-the-job injuries as well.
Every injury has something in common: It costs everyone involved something. There are direct and indirect costs, both to the employee who was injured and to the employer who eventually will pay for the accident. The costs are more than dollars.
Employee Direct Costs include lost regular wages and overtime. Employee Indirect Costs include mental anguish, physical pain and suffering, decreased active participation with their family and friends (It's tough to be at a ball game when laying in a hospital bed), inability to be productive on or off the job,
Employer Direct Costs include workers’ compensation claims, medical bills, associated legal costs, possible increased insurance costs, and uninsured property damage costs.
Employer Indirect Costs include the loss of valuable employee (with a result of lost efficiency on the job), managerial and clerical time expended to handle injury claims, time loss wages paid with no work performed, hiring and training replacement, damaged or destroyed equipment, materials or tools.
Remember, the indirect (or hidden) cost in an accident is between three and ten times the actual cost of the claim. But it is not the costs, direct or indirect, that totals the most. More often than not it is the loss of a valuable co-worker or member of a family that causes the most problems for company.
Make sure that you have instilled a safety culture in your company, where everyone is looking for potential unsafe situations. You’ll be glad you did.