Costs associated with health and safety (Financial reasons for implementing health and safety)

 Direct Costs

Direct costs are those that are directly related to a mishap (incident, accident, injury and ill health). Some of the costs are:-

1. Damage to plants, machineries, equipment, tools and materials.
2. Delay due to production downtime.
3. Investigation costs.
4. Medicinal first aid costs.
5. Legal fines etc.

Indirect Costs

Indirect costs are those that are indirectly related to a mishap (incident, accident, injury and ill health). Some of the costs are:-

1. Employee training and replacement costs.
2. Public liability claims.
3. Employee liability claims.
4. Loss of public image.
5. Loss of business.
6. Loss of contract.
7. Less chance of getting the equipment's, materials, plants, machineries etc insured.

The above mentioned costs can be again subdivide into insured and uninsured costs.

Insured Costs

Insured costs are those costs which can be seen and accounted for.

1. Damage to machineries, plants, equipment's, tools and materials.
2. Public liability claims.
3. Employee liability claims.

Uninsured Costs

Uninsured costs are those which cannot be seen and cannot be accounted for.

1. Loss due to production downtime.
2. Investigation costs.
3. Medical costs.
4. Legal fines
5. Employee training and replacement costs.
6. Loss of image
7. Loss of contract.
8. Loss of business.