Hidden Cost of AccidentsMonetary and/or Emotional

Real and Hidden CostsWhat does an accident really cost?

?

Real and Hidden CostsWhat is the Medium-of exchange? What are costs based on?Quality of LifeHealth and Welfare

$$$$$

Direct CostsTypically Insured Costs

Medical ExpensesWage Compensation (indemnity)Legal Defense

Hidden CostsUninsured Amounts

Paid by the employer3 to 5 times greater than direct costs

Direct Costs$

Hidden Costs$$$$$

Hidden CostsCosts Of Lost Wages Paid To Injured Employee

Includes medical treatment and time away from work not covered by insurance

Sick leaveDoctors visits

Hidden CostsCosts paid to other workers not injured

Includes those employees that stopped work to watch, talk about or to assist injured.Those employees whose job is dependent on injured worker’s products or tasks to accomplish their work

Hidden CostsCosts of damage to material, property or equipment

Repairs to any equipment or property damaged in the accident

Hidden CostsCosts of overtime necessitated by the accident

Including costs to make up for lost production, additional supervision, and additional operating expenses

Hidden Costs

Additional wages paid to supervision

Involve caring for the injured personTransporting injured to medical facilityInvestigating accidentGetting operation organized again

Hidden CostsResuming to normal activities

Instructing, training and repositioning employeesMay require hiring a replacement employee with all costs of hiring a new employeeDiminished productivity

Hidden CostsManagerial or clerical personnel processing claims, forms and any related paper work

Processing claims and related paper workTending telephone calls and communications related to incidentConducting interviews and investigationsAttending HearingsUncovered legal costs

Hidden CostsWages due to decreased productivity

After employee returns to work, capacity is diminished because of restricted movementEmployee is nervous and less confidentEmployee spends time discussing incident with other employees

Hidden CostsReduced Competitive Position Caused by delaysIncreased operating costsRework time on damaged productsIncreased cost of insurance (Mod Rate)Higher Labor RateUnfavorable publicityCivil penalties, fines, legal fees and time involvement for violations

Intangible FactorsFamily Stress

Mental and Emotional Strain

Loss of Ability to Make a Living

Danger Signs!Indicators of Larger Problems

Near missesMinor incidentsSerious Incidents

Property damageProduct damageEquipment damageEmployee injuries

Danger Signs!Production is not at optimumProfitability is reducedEmployee moral is diminishedPublic image is damaged

Getting set up for the “big one”

2 Unsafe Landings At O’Hare Airport Each Day

16,000 Lost Pieces Of Mail Per Hour

20,000 Incorrect Drug Prescriptions Per Year

50 Newborn Babies Dropped At Birth Each Day

32,000 Missed Heartbeats Per Person Each Year

2 M Books In The Next Year Will Have The Wrong Cover

900,000 Credit Cards Will Have Incorrect Information

99.9% Good Enough?

Inexperience = Accidents

80%

20%Employees Who Have Less Than 12 Months Experience at a Different or New Task, Account For 80% of ALL Accidents

Guard Against These Traps

Time PressureVague GuidanceAfter Wake-up or MealFirst Time EvolutionOver-confidenceDistractive EnvironmentHigh Work Load/StressFirst Day After Time Off

Accident Investigation Tips

1. Secure 2.Treat 3. Investigate!

Interview Witnesses Document Call In the Claim ASAP Don’t Wait! Facts Not Fault Finding Don’t Interrupt “In Their Words”

Accident Investigation Tips What Accidents Do You

Investigate? Root AND Primary Causes

Identified Corrective Actions For Each Committee Should Review What Are You Doing Different

Now To Prevent Recurrence?

Serious

Minor

NearMisses

10

30

600

1 Fatality