In a study done in 1993 by OSHA, Injuries alone cost US businesses an estimated $110 Billion! And this number does not include occupational illnesses that cost a lot more.
Suprised? Well, lets take a deeper look at the impacts on these accidents on a companies' profit and sales.
To pay for an accident with a total cost of $500:
- A soft drink bottler would have to bottle and sell over 61,000 cans of soda.
- A food packer would have to package and sell over 235,00 cans of corn.
- A bakery would have to bake and sell over 235,000 donuts.
- A contractor would have to pour and finish 3,000 square feet of concrete.
- A ready mix company would have to deliver 20 truckloads of concrete.
- A paving contractor must lay 900 feet of 2-lane asphalt road.
Shocked? We, at OSHA, were too. The costs of accidents can impact a companies profitability.
The big reason accidents are more expensive than most of us realize is that there are a lot of hidden costs involved in an accident.
Direct Costs: Workers' compensation claims which cover medical costs and indemnity payments for an injured or ill worker.
Indirect Costs:
- Lost time working by: the injured, the coworker, the supervisor
- Spoiled Product
- Unhappy Customers
- Cleanup Time
- Scheduled Delays
- Training new employees
- Overlooked Costs
- Legal Fees
- Lower Moral
Studies have shown that the ratio of indirect costs to direct costs vary widely, from a high fo 20:1 to a low 1:1.
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