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P a g e
Stress related 0.5 million
Lower respiratory disease 202,000
Hearing problems 170, 000
The Financial Arguments for Maintaining Good Standards of Health & Safety
Hidden Costs of Accidents: In a survey published by the HSE in 1993 it was shown that
for every 1 recovered from insurance companies for losses and accidents, between 8
and 36 were not recovered and had to be paid for from the company profits. In one case
at a hospital this amounted to 5% of the annual running costs; and in another, for a
transport company 37% of the annual profits.
The Large Company:
Generally speaking, it is big companies which tend to suffer the largest financial losses
as a result of industrial accidents. But, paradoxically, it is these same companies that can
best absorb quite large losses without much effect on their overall profits; and, hence,
dividends paid to their shareholders. Large companies often maintain high stock levels
in order to be able to maintain their markets in adverse situations. Alternatively, they
may keep spare productive capacity available at another site or in another building.
The Small Company:
Smaller companies, by comparison, usually have lower levels of investment and
resources available and, as a consequence, might face serious financial difficulties with a
loss of 10,000 or less. The effect of any such financial loss is, therefore, not proportional
to the size of the company.
Another interesting finding in relation to accidents in small companies was revealed in
an investigation into the relationship between injury absences, sickness and
absenteeism. It was found that injuries occurring in smaller companies tended to result
in more time off than either sickness or absenteeism. It follows that effective techniques
of safety management are of more benefit to the smaller company.
The Cost: Health and safety failures cost Great Britain up to 18.1 billion each year (2.1%
-2.6%
GDP). The cost of work-related accidents and ill-health to employers equals 140-
300
for each worker employed, while the cost of work-related accidents and illness to
employees is estimated at between 3.5 billion and 7.3 billion a year (4% - 8% of gross
company trading profits). Over 180 million could be saved in work-related illness costs
in the construction industry alone.
The cost of work-related accidents and ill-health to employers is, of course, an average
cost. Some accidents will cost only a few pence for a sticking plaster; others may cost
hundreds or even thousands of pounds, when the cost of hospital treatment is taken
into consideration.
