Health and Safety is FREE for anyone!

By Carola Mittag

Posted Apr 15th, 2019 in Tips & News

The only thing more expensive than active due diligence is explaining to a court why you didn’t “take every precaution reasonable in the circumstances for the protection of the worker”.   OHSA S. 25. (2)(h)

Work-related injuries and illnesses COST employers many thousands of dollars. Direct costs for work-related injuries are just the tip of the iceberg. Indirect multiplier costs for those injuries are 3 to 10 times higher. Consider the following:

Direct costs:
  • Worker’s compensation premiums
  • Case management
  • Medical costs for surgery, medicine and rehabilitation
  • Medical and/or assistive aids and devices
Indirect costs:
  • Lost/decreased productivity
  • Time away for medical appointments
  • Production down-time
  • Additional overtime pay required
  • Time needed to interview, hire and train a replacement
  • Interviewing and training new employee
  • Delays in shipments and filling orders
  • Loss of products or services
  • Negative media attention > tarnished reputation
  • Potential OHSA penalties
  • Legal fees
  • Damages to equipment, machinery, materials and facility
  • Higher Worker’s Comp premiums
  • Potential loss of client loyalty and support
  • Managerial/administrative costs due to an accident including inspections, investigations, meetings
  • Loss of employee time associated with assisting with the accident, administering first aid and witness interviews
  • Loss of employee morale
  • Reduced work pace due to other employees fear of injury

A company experiencing an employee injury with direct costs of $5,000 is expected to carry indirect costs of approximately $20,000, bringing the total cost to $25,000. Based on a profit margin of 10%, it would take that company $250,000 of revenue creation (and collection) to offset expenses.

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