Legal matters revolving around company policies are going deeper into the direct effects of proper working systems on work accident compensation claims and the company’s profit. What many companies don’t understand is that for every single occupational death, lost workday case and any reportable case without lost work days in one year, the business loses more than 900,000 dollars in revenue or investments. But with the growing number of work-related accidents in the past years, any company would be lucky to have less than a dozen per quarter.
Experts believe that the main problem here is very simple – the lack of a safe working system. Many industries including manufacturing, chemical, construction and shipping sectors are experiencing increased rates in work accidents as compared to the previous years, especially before the global economic crisis.
A particular issue regarding simple negligence was reported late March of 2012 in Leicester, where an 18 year old male worker fell more than two meters while unloading a shipping container. The man suffered injuries on his abdomen, shoulder and wrist. These injuries left the man with weeks under recovery. The authorities prosecuted the shipping company for violating work at height regulations relating to the accident. One of the food company partners was fined 7,500 euros. With a simple accident like this, the company’s shipping container sales and product distributions could decrease by as much as 2-3 percent; not to mention the work accident compensation claim and the company’s net profit.
A Health and Safety Executive spokesperson noted that the accident could have been prevented by a simple safe working system. The rules were actually present within the company, the only problem was proper implementation and monitoring to make sure that all these rules were being followed.
A previous research conducted by the European Agency for Safety and Health at Work notes that fatal incidents occurred in 2005 under agriculture and forestry include 10 deaths per 100,000 workers, followed by construction sectors with 8.4 deaths for every 100,000, and transport and communications with 7.7 deaths for every 100,000. If you calculate each death in relation to work accident compensation, company costs and revenue lost, ultimately, these would have all been prevented with a safe work system.