Mẹo Which of the following is a direct cost associated with workplace accidents? ?
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Dương Văn Hà đang tìm kiếm từ khóa Which of the following is a direct cost associated with workplace accidents? được Cập Nhật vào lúc : 2022-12-24 06:50:12 . Với phương châm chia sẻ Bí quyết về trong nội dung bài viết một cách Chi Tiết 2022. Nếu sau khi đọc Post vẫn ko hiểu thì hoàn toàn có thể lại Comments ở cuối bài để Admin lý giải và hướng dẫn lại nha.All workplace accidents have consequences. Regardless of the severity of an accident, when someone is injured on the job there are both direct and indirect costs that follow. While they have completely different effects, both types of costs can significantly impact the business’ operations, employees, bottom line and more. Thus, companies should view accidents from a holistic perspective by recognizing that injuries do not only impact the wounded person but also the entire company.
Nội dung chính Show- What Are the Direct Costs of Workplace Accidents?What Are the Indirect Costs of Accidents?Types of Indirect CostsTraining and Onboarding Replacement EmployeesAccident InvestigationLost ProductivityImplementing Corrective MeasuresRepairing Damaged Equipment and PropertyWhich of the following is a direct cost of the accident?Which of the following are considered direct costs for workplace accidents quizlet?What is direct and indirect cost of accident?What are indirect costs for workplace accidents?
Being able to identify and differentiate between direct and indirect costs can help your company prepare for the inevitable effects of workplace accidents. While direct costs are often easier to spot and manage, it’s just as important to acknowledge and account for indirect costs. In fact, indirect costs account for about 71% of total injury costs – the majority of the incurred expenses.
With 7 million work-related injuries occurring each year, it’s imperative that your business can distinguish between direct and indirect costs so that you can actively prepare for the impacts of future accidents.
Direct costs are those that are easily calculated and can be directly attributed to an injury, such as workers’ compensation costs. According to the 2022 Liberty Mutual Workplace Safety Index, serious, non-fatal workplace injuries totaled nearly $60 billion in direct U.S. worker’s compensation costs. This translates into more than spent by businesses on injuries. Still, workers’ compensation costs are often only a fraction of the direct expenses that a company must pay.
Examples of direct costs:
- Workers’ compensationMedical expensesLegal feesIndemnity payments
Indirect costs are any unbudgeted, uninsured expenses associated with a workplace accident. They are the costs that cannot be seen from the surface. Therefore, careful inspection is typically needed to successfully identify each of the indirect costs associated with a particular accident. Indirect costs tend to have long-term effects and can substantially impact a business’s bottom line. In fact, they are typically anywhere from 2 to 10 times as expensive as direct costs.
Examples of indirect costs:
- Productivity lossAccident investigationReduced employee moraleRecruiting, hiring and training replacement staffDamaged equipmentOSHA fines and penalties
Since this type of cost is usually ineligible for insurance coverage, companies are often faced with a greater financial burden than that associated with direct costs.
Although workplace accidents are inevitable, they can be minimized by implementing a strategic accident prevention plan, such as a safety footwear program. A strong safety program can help companies reduce the number of accidents and injuries sustained on the job; fewer accidents translate to fewer dollars spent on both direct and indirect costs. In fact, OSHA studies indicate that for every $1 invested in a safety program, companies can save $4 to $6. With an effective safety program, as companywide illnesses, injuries and fatalities decline, so do annual costs.
Whenever a workplace accident occurs, companies are faced with many different costs. Some of these costs are easily calculated while others are hidden costs that aren’t recognized until after an accident takes place. Regardless, companies should prepare for potential direct and indirect costs by establishing a strong safety program that will help reduce the number of workplace injuries and eliminate some of the visible and hidden costs the employer would incur because of an accident.
Read The Costly Reality of Slip-and-Fall Injuries to learn more about the financial impact workplace accidents can have on your company.
According to OSHA, indirect costs are all the uninsured additional costs associated with an accident. While they may be less obvious than the direct costs associated with accidents, they tend to be much greater.
What Are the Direct Costs of Workplace Accidents?
Direct costs include workers' compensation payments, medical expenses, legal services, and other expenses that arise directly as a result of a workplace accident. These costs are the ones covered by commercial insurance policies. Liberty Mutual's 2022 Workplace Safety Index estimated that employers paid more than $1 billion per week in 2015 for direct workers’ compensation costs for disabling, nonfatal workplace injuries.
What Are the Indirect Costs of Accidents?
Indirect costs are additional or hidden costs associated with an accident. These are not covered by insurance, are typically unexpected, and rarely budgeted. Because of this, they can have devastating and lasting impacts on companies that bear the brunt of them.
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A conservative estimate of losses associated with accidents finds that for every dollar incurred in direct costs, there are three dollars worth of indirect costs. Other sources estimate that indirect costs are 2 to 10 times as expensive as direct costs.
Types of Indirect Costs
Training and Onboarding Replacement Employees
According to the Bureau of Labor Statistics, more than a quarter of cases related to injury and illness result in 31 or more days away from work.
When an injury keeps a worker off the job, it might be necessary to train a temporary replacement. This incurs an additional cost as well as often taking staff away from their usual duties to conduct the training.
Even when the other employees manage to absorb the injured worker's job responsibilities, the company may still incur a cost due to lowered productivity.
Accident Investigation
Accident investigations are essential, but they can be time-consuming and temporarily take people away from their regular job dutiies.
A thorough investigation, moreover, might require bringing in an outside agency, which is itself an additional cost.
Lost Productivity
Even minor injuries can take a toll on the emotional state and productivity of other employees. But serious injuries or fatalities can shut down operations completely until formal investigations are complete.
The productivity loss can come from the investigation process, which results in fewer employees on the floor. But it can also reduce the quality of the workers' productivity due to overtime, fatigue, and lowered morale.
Implementing Corrective Measures
Incident investigations often result in a set of recommendations to make the workplace or the work processes safter.
These may include upgraded equipment, better machine guards, new PPE, or even hiring additional personel. In those cases, responding to the accident involves costs that can themselves be quite substantial.
Repairing Damaged Equipment and Property
Post-accident cleanup can require the use of personnel time as well as disposable equipment. Additionally, any property that has been damaged from the accident will need to be replaced or repaired. Depending on its nature, the accident may also damage or spoil stock or products.
Additionally, PPE that has been involved in an incident sometimes needs to be discarded and replaced.
Conclusion
OSHA estimates that businesses with established health and safety management systems can reduce their injury and illness costs by 20 to 40 percent. However, it is not just about saving money. Having an effective system in place means workers are safer – and that is invaluable.
Companies need structured and strategic safety programs that include strong safety culture, preparedness for anticipatory accidents and employee accountability to reduce the number of workplace incidents and associated hidden costs.
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Written by Michael Smeaton | President
Michael “Mike” Smeaton serves as President of the SafetyNetwork. He has over 39 years of experience in the industrial safety marketplace. Prior to becoming SafetyNetwork President, Mike worked in American Optical’s Safety Division as a Regional Sales Manager until he acquired a portion of Quad City Safety, Inc. In 1989 Mike purchased the remaining portion of Quad City Safety and, over the next decade, turned it into one of the leading independent safety distributors in the United States.
Mike attended both The University of Iowa and St. Ambrose University. He has two children, Mike, Jr. and Melissa. Mike is married to Deborah Smeaton.
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Which of the following is a direct cost of the accident?
Direct costs are the expenses incurred from and directly linked to an accident. Direct cost includes worker's compensation payment, lost wages, medical expenses, and legal services.Which of the following are considered direct costs for workplace accidents quizlet?
Direct costs associated with occupational health and safety issues include workers' compensation costs. Indirect costs include those associated with costs of lost productivity for the enterprise, damage to plant and equipment, costs of replacement employees, and time costs related to the accident investigation.What is direct and indirect cost of accident?
Direct costs are expenses that are covered by your workers' compensation insurance. Indirect costs are unexpected costs not compensated by your workers' compensation policy and vary by the extent of the employee's injury.What are indirect costs for workplace accidents?
Indirect Costs are unbudgeted expenses that a company has to endure unexpectedly. This includes training replacement employees, overtime, equipment loss, accident investigation, loss of productivity, and absenteeism. Tải thêm tài liệu liên quan đến nội dung bài viết Which of the following is a direct cost associated with workplace accidents?