Workplace injuries account for billions of dollars in terms of costs every year. When these injuries occur, businesses can easily notice the immediate and direct costs, but there are extra uninsured expenses incurred beyond the immediate consequences. These are known as indirect costs and can go up to 10 times more than direct costs, depending on the circumstances surrounding the incident.
A workers’ compensation injury firm would advise businesses to prevent workplace injuries to keep their employees safe and prevent these potentially significant expenses. Unfortunately, workplace accidents happen all the time. If an occupational injury occurs and you require legal assistance, a workers comp attorney can help you protect your interests.
Read on to learn which things are considered indirect costs for workplace accidents and how to prevent them.
Accident investigation is a key aspect businesses face when addressing workplace injuries. For example, if a slip and fall occurs, leading to a serious injury, it initiates a process of thorough investigation to uncover the root causes, contributing factors, and circumstances surrounding the incident. This investigative process incurs various expenses that businesses need to account for.
These may include the following:
When a workplace incident occurs, it can result in damage to equipment, machinery, or even the physical infrastructure of the workplace.
One of the primary financial considerations is the actual cost of repairing the damaged items. This involves engaging professionals or technicians to assess the extent of injuries and carry out the necessary repairs. Depending on the severity of the damage, these repair costs can vary widely.
In cases where the damaged items are beyond repair, or the cost of repair exceeds the value of replacement, businesses may need to replace the affected items entirely. So, they will procure new equipment, which may come with a substantial price tag.
Moreover, there are additional expenses associated with the downtime during the repair; these include:
When a workplace accident occurs, it often leaves a profound emotional impact on the employees who witness or are directly affected by the incident. They may experience emotional distress, anxiety, or even trauma.
Due to such distress, morale may suffer, leading to decreased motivation and productivity among the workforce. Addressing the emotional cost requires the provision of counseling or support services, which further adds to the costs of the workplace incident.
News of workplace incidents can spread quickly, tarnishing the reputation of the affected company. This is more serious, especially those incidents involving serious injuries or fatalities.
Customers and business partners may lose trust in an organization that is perceived as unsafe or negligent in ensuring employee well-being. This loss of trust may reduce customer loyalty, decrease sales, and strain relationships with stakeholders.
Following an accident, businesses may face lawsuits, regulatory investigations, or other legal proceedings. As a result, businesses usually incur legal costs when they seek legal representation to navigate legal matters. Legal fees include the costs associated with:
Undoubtedly, workplace injuries can be very expensive and may negatively affect the company’s bottom line. One of the best ways to grasp a clearer understanding of the costs associated with a workplace incident is to use OSHA’s $afety Pays Program. Then, you can prevent such costs by implementing various tips, including:
As seen above, workplace accidents can have substantial indirect costs. These costs may impact the company’s profitability, which means companies need to implement ways to mitigate them. At Dyer, Garofalo, Mann & Schultz L.P.A., we believe that considering these costs paints a better picture of the importance of workplace safety for the prevention of occupational injuries.
However, if you’ve experienced a workplace injury, don’t hesitate to reach out to an attorney to help protect your rights based on workers’ comp laws. An Ohio workplace injury lawyer can guide and help you navigate the legal processes to pursue rightful compensation. Whether you’re dealing with medical expenses, lost wages, or other challenges resulting from a workplace accident, an attorney ensures your interests are represented. Contact us today, and let us review your case at no cost.
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