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You Should Be Concerned About Controlling Losses.

Insurance pays only the obvious costs of an accident. You pay the hidden costs out of your profits.

Hidden costs of loss are unrecognized costs such as losses in labor productivity, disrupted schedules, supervisory and administrative time, replacement of damaged material and equipment, loss of customers - the list goes on and on.

Hidden costs typically run from four to seven times the insureds' cost.

The Hidden Costs of Accidents

Direct Costs

  • Medical
  • Compensation

Indirect and Hidden Costs of Accidents

  • Time lost from work by injured employee
  • Loss in earnings power
  • Economic loss to injured employee's family
  • Lost time by fellow workers
  • Loss of efficiency due to break-up of crew
  • Loss of time by supervisors
  • Cost of training a new crew
  • Damage to tools and equipment
  • Lost time due to damaged equipment out of service
  • Loss of production for remainder of the day
  • Spoilage - fire, water, chemical, explosives, etc.
  • Failure to fill orders
  • Overhead cost(while work was disrupted)
  • Miscellaneous - There are at least 100 other items of cost that appear one or more times with every accident

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