About Lesson
1.1.4 Economical/Financial Reasons: Direct Costs
These relates to the fact that accidents and ill-health cost money, when an accident occurs, there will be cost (direct & indirect) incurred because of that event, some of the costs may be insured and some of them are not insured. An organization that loses money through poor management of H&S (being sued or inability to effectively carry out business activities) could possibly go out of business.
Direct cost:Â The costs which are directly related to an accident is known as direct cost.
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Direct Insured Cost |
Direct Uninsured Cost |
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Injury, ill-health, damage |
Product and material damage |
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Clams on employers and public liability insurance |
Legal costs. |
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Damage to building, equipment or vehicles |
Training and replacement costs |
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Insured Cost
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Uninsured Cost
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