Cost Savings of Health and Safety

It pays to know the facts

Each year employee accidents and ill-health cost British employers an estimated £3.9 billion to £7.8 billion, of which £910 million to £3,710 million comes from accidental damage to property and equipment.

It's often assumed that insurance will cover any financial losses. But policies generally fall short when it comes to costs involved in the general day to day running of a business. The shortfall can be startling:

  • Uninsured losses are ten times the cost of insurance premiums paid. (Source: HSE)
  • Uninsured losses from accidents in smaller firms add up to £315 per employee, per year. (Source: Norwich Union Risk Services)

Other cost implications that are often overlooked include:

  • Dealing with the incident - Immediate action means downtime for the injured person and anyone assisting. Time spent administering first aid treatment, a hospital referral or home rest, all result in downtime. Making the area safe and making machinery serviceable are more costs for which the business is accountable.
  • Investigation of the incident - Time spent reporting the incident, holding meetings to discuss it and investigating it internally are the first step. Then time spent with an HSE, or Local Authority inspector and external consultants' fees to assist with the investigation can rapidly accumulate into hidden costs.
  • Getting back to business - Rescheduling work, recovering production, repairing damage and cleaning the site are inconveniences which slow production and reduce efficiency. Hiring replacement tools, people and equipment might also be required.
  • Business costs - Absentee costs are deceptive. Besides the salary of the injured worker, a combination of replacement staff salaries, lost time, reduced productivity and quality add to escalating costs. Training new or temporary staff, overtime and contract penalties can all be devastating to any business.


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For information and advice on making your business a better business contact the HSE Infoline

0845 345 0055

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