Work-Related Injuries: Understanding the Financial Costs for Companies
Learn the direct and indirect financial costs of work-related injuries and how companies can reduce them.
Work Related Injury Attorney West Palm Beach FL
Organizations often tend to ignore and under estimate the cost of work related injuries. They go an extra mile to have expensive inventory management systems in place. But the human resource which is the most important asset is taken for granted. In fact most of the organizations do not realize that work place injuries can actually cost them a hefty amount. There are both direct and in direct costs associated with work place injuries.
Direct costs are usually simple to comprehend and estimate. They include the payments made as a direct consequence of the injuries. These include:
- Direct premium cost
- Lost wages
- Health and safety fines
- Insurance claim activation
Organizations pay more heed to calculating the direct costs and tend to overlook indirect costs as these costs are often difficult to estimate. However, in direct costs can cause more damage in monetary terms. Following are some indirect costs which arise as a direct consequence of a work related injury:
- Damage to company’s image
- Negative effect on workers morale
- Worker replacement cost
- Negative impact on customer service
- Reduced productivity
Research has shown that at times in direct costs can be 2 to 10 times higher as compare to direct costs. Hence a proper injury management system should be in place in order to avoid these unwanted costs.
This article is general information, not legal advice. Every case is different - call (561) 598-7120 for a free consultation about yours.