Company has to face serious financial burden due to accidents.

The amount which the company spends

for the prevention of an accident when compared to the financial costs after the accident it is much
higher. The company has to bear the costs of hospitalization of worker, damage to machinery,
equipment repairs, hiring new workers, legal proceedings, court prosecution and overtime costs. The
goodwill of the company also falls due to the accidents. That results is the decrease of business in the
future. Workers become less productive when the moral decreases due to an accident. All these things
contribute in the finical loss of the company. Injured workers can sue for compensation which can result
in legal proceedings which equals to financial loss.

All these costs are faced by the company because the company has no insurance.