Direct costs - the measurable costs arising
directly from the accident.
Indirect costs - those which arise indirectly as a consequence of the event. Indirect costs are often difficult to quantify precisely and may be hard to identify.
|
Direct Cost |
Indirect Cost |
|
Fines in the
criminal courts. |
Loss of staff
from productive duties in order to investigate the incident, prepare reports,
undertake hospital visits, deal with relatives, attend court proceedings. |
|
Compensation
payable to the victim, which is likely to be met by insurance cover and will therefore
result in an increase in insurance premiums. |
Loss of staff
morale (which impacts on productivity, quality and efficiency). |
|
First-aid
treatment. |
Cost of
remedial action following an investigation, e.g. change of process or materials
and/or the introduction of further control measures. |
|
Worker sick
pay. |
Compliance
with any enforcement notice served. |
|
Repairs to, or
replacement of, damaged equipment and buildings. |
Cost of
recruiting and training temporary or replacement labour. |
|
Lost or
damaged product. |
General
difficulties in recruiting and retaining staff as an indirect result of the accident. |
|
Lost
production time whilst dealing with the injury. |
Loss of
goodwill of customers following delays in production and fulfilling orders. |
|
Overtime to
make up for lost time. |
Activation of
penalty clauses for failing to meet delivery dates. |
|
Costs
associated with the rehabilitation of the injured worker and their return to work. |
Damage to
public image and business reputation. |