The Business Case for Safety
Contact Information:
Wayne Vanderhoof, CSP
Safety Professional/President
RJR Safety Inc
164 Petroleum Ave
Claysville, PA 15323
724-809-4234 cell
724-663-5163 fax
wayne@rjrsafety.com
RJR Safety Inc.
Wayne Vanderhoof
CSP
Indirect Costs
not covered by workers’ compensation insurance
Lost production by the injured worker
Fellow workers – to assist in the incident investigation
Supervisor – to perform incident investigation
Wages paid during lost production time
Implement corrective actions Damaged/contaminated products
Unhappy customers Clean-up time
Training new employees Overhead costs
Legal fees Increase in insurance premium
Train and compensate a replacement worker
Overtime for current workers to cover for injured worker
Production schedule delays
Additional administration time to file reports
Property damage & repair
Direct Costs
covered by workers’ compensation insurance
Insurance premiums Medical Bills
Indemnity Payments
Temporary disability payments
To understand the difference in direct versus indirect costs, a pioneer in safety named Frank E. Bird, Jr. developed a diagram of an iceberg showing the relationship between direct costs which are the small part of the iceberg above the waterline and can be seen (calculated) and the indirect costs indicated by the massive part of the iceberg below the waterline that are difficult or almost impossible to see (calculate). This diagram has been used extensively and can be accessed on the OSHA website at “Safety Pays”.
RJR Safety Inc
