Financial Arguments for Maintaining Good Standards of Health & Safety.

Question 1

There are four main classes of accident:

Answer 1

• Those that cause no damage to property or injury to people.
• Those that cause damage to material, plant or equipment but do not injure personnel.
• Those that cause injury to personnel but do not damage property.
• Those that cause both injury to people and damage to material, plant and equipment.

Question 2

The cost of an accident can be divided into two parts: there are:

Answer 2

Direct costs: which include insurance claims, sick pay, loss of production, repairs, product loss or damage, public liability, damage to equipment, buildings, etc.

◦Indirect costs: which include business interruption, product liability, loss of orders, cost of time spent on investigations, legal fees, loss of corporate image, loss of morale.

Question 3

The economic benefits for an organisation for implementing a successful health and safety management system include:

Answer 3

Increased productivity with improved morale.
◦Reduction in downtime.
◦Lower sickness rates.
◦An improvement in product quality.
◦Reduction in costs following accidents or legal actions involving civil claims or enforcement procedures.
◦Reduced insurance premiums.
◦An enhanced corporate image.
◦Lower staff turnover.

Question 4

In short, arguments for good management of health and safety include:

Answer 4

◦Moral: Ethical and responsible behaviour.
◦Financial: The costs of injuries and ill-health.
◦Legal: Criminal and civil liability.