NEBOSH-IGC1, Element-1, DIRECT AND INDIRECT COSTS, INSURED AND UNINSURED COSTS

THE BUSINESS CASE FOR HEALTH AND SAFETY When an accident take place there two types of losses that an organisation may have to face: Direct costs: the measurable cost that are directly associated with accident. Examples of direct costs: • Fines in the criminal courts. • Compensation payable to the victim, which is likely to be met by insurance cover and will therefore result in an increase in insurance premiums. • First-aid treatment. • Worker sick pay. • Repairs to, or replacement of, damaged equipment and buildings. • Lost or damaged product. • Lost production time whilst dealing with the injury. • Overtime to make up for lost time. ...