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