LEARNING TASK 1 : Describe the causes and results of accidents
Costs of accidents and injuries
The direct costs of an injury are the easiest to see and understand. These costs include emergency room and doctor visits, medical bills, medicines, rehabilitation, and lost wages. These direct costs are covered by a company’s insurance.
Indirect costs of an injury are often overlooked. These costs can amount to up to four times the direct cost of the injury. Indirect costs include administrative time dealing with the injury and medical care, loss of production, raises in premiums, replacing the injured employee’s lost hours of employment by hiring another employee, loss of reputation and confidence in employees and clients, unwanted media attention, and more.
Many projects use a company’s accident history or incident rate during the tender process and compare it to the other potential bidders when deciding which company to select. A higher rate of incidents may mean loss of a bid and therefore loss of work.