The Business 'Triangle' - financing the uninsured loss of a workplace accident

All accidents have financial costs associated with them, broken down into two main categories

• Insured
• Uninsured

Employer’s liability insurance covers the cost of the injuries and loss to the person affected.

The uninsured costs range from sources such as:

• the accident investigation and its remedial measures
• down time
• sick pay
• over time
• agency fees
• administration costs
• product re-working
• fees for late delivery / shorting
• business reputation damage and loss of potential future earnings
• policy excesses
• premium increases.....and the list goes on!

It’s these uninsured costs that I want to look at - where the money financing them comes from and what factors may influence those in the decision making process.

The Business Triangle

All workplace accidents result in costs - direct and indirect. It is the latter that ironically will directly affect the capacity of the business to meet shareholder expectations.