Costs of accident

Direct costs

Medical This is the medical expenses for the treatment given to the injured employee.
This includes the additional medical costs: physician and hospital bills, prescription
medicine, occupational therapy, and medical equipment, such as crutches and
wheelchairs.
Compensation - in the event of work-connected disability, injury or illness, the injured
employee is awarded a reimbursement for loss, injury, or disability. This is typically
money for income and medical needs.
Indirect and Hidden costs

Time lost from work by injured due to the inability of the injured employee, he/she is
forced to rest from work for an amount of time depending on the disability which means
he/she will not be able to work.
Loss in earning power since the injured employee is resting, this manpower is
decreased.
Economic loss to injureds family the income of the family of the injured employee is
reduced because the employee is out of work.
Lost time by fellow workers when an accident occurs, the other workers close to the
scene will get distracted and go away from their work to see the accident.
Loss of efficiency due to break-up of crew - the other employees will be assigned to the
job of the injured to cover for him/her, which results to decreased efficiency of the other
jobs because of decreased manpower.
Lost time by supervision in the event of an accident, the supervisor takes some time
for activities related to the accident such as investigating the accident and supervising
the activities necessary to get the department functioning again. All of these activities will
interrupt the supervisors productivity.
Cost of breaking in new worker sometimes a new worker is required to cover for the
injured one which doubles the cost for the job assigned to the injured worker.
Damage to tools and equipment if the tools or equipment involved in the accident are
damaged, the equipment might need a maintenance or replacement.
Time damaged equipment is out of service when the equipment is damaged, it cannot
be used for the time being until after the maintenance is finished.
Spoiled work if the accident occurred while the employee is doing a work, it might be
ruined because of the accident which will lead to the work being done by the employee
to be useless.
Loss of production an accident disrupts the normal operations, which leads to
inefficiency and reduced production.
Spoilage: fire, water, chemical, explosives, etc because of the accident, fire, water,
chemical, explosives, and other similar resources might be wasted.
Failure to fill orders due to the reduced efficiency due to the accident, the production
will be affected and the deadlines will not be met.
Overhead cost (while work was disturbed) this is the cost of continuing the operations
after the accident, with less manpower.
Miscellaneous: there are at least 100 other items of cost that appear one or more times
with every accident other hidden costs are:
o time lost on redoing the spoiled work
o legal issues
o paperwork