Workplace Safety

Workplace safety can save you money by reducing injuries and claims. Indirect costs of claims can add up quickly, including loss of time and resources by having an employee missing from work. Direct costs of accidents are the costs that are easily measurable, such as the medical bills, medication and lost wages. Indirect costs of workplace accidents are intangible, like production loss, overtime for other workers picking up the slack and possibly hiring a new employee if the injured one cannot return. Workplace safety is an area that can easily be improved. Recent studies show that indirect costs are actually four times higher than direct costs, meaning that for every $1,500 spent in direct costs for the injury, there is $6,000 in indirect costs. Lack of workplace safety translates to a huge expense for you because you have to pay for the direct and indirect costs of injuries and claims. If you have a 5% profit margin, you would have to sell over $100,000 in product to cover the $6,000 of indirect costs. This is a real revelation! Most businesses are not equipped to handle such a loss financially.

Workplace Safety Begins with Prevention

Loss of productivity is the biggest reason to implement workplace safety programs. Worker’s compensation will not pay for indirect costs, so for each injury you prevent with workplace safety programs, you are adding to your bottom line. For many companies, two or three claims like this could mean the difference between financial solvency and failure. The backbone of any good insurance program should be on risk management, which can stop claims before they have a chance to begin. PEP wants to be your resource to minimize any risks in your workplace, reducing the possibility of injuries and claims. We want you to understand the full cost of an injury in order to make informed decisions about workplace safety.

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