Posted By Merv Newman
Kevin,

there was some research a few years back that concluded you could never come up with a formula to accurately calculate the cost of a specific accident. There are too many variables even in the direct costs : time lost, production lost, training replacement employee, management time, material damage, insurance costs and soon. Indirect costs are usually accepted to be about 4 times direct costs.

And I'm only talking "normal" accidents here. Not "catastrophes"

I use a figure of 15 000 euros ; 5 000 for the day of the accident plus 1 000 per lost day, which averages out at about 10 days.

(call it £10 000)

Some consultant groups quote a figure 3 to 5 times higher. But that is only to frighten you into using their services.

HOWEVER : Total "non-safety" costs seem to come out about the same for good and bad results. A "good" company will have few accidents but spend a lot of time and money per accident on prevention and detection / correction of unsafe acts and dangerous situations.

A "bad" company will have more accidents but will not spend much time or money per accident on detection/prevention etc. Pay the fine, cough-up the insurance premium.

But then you come to the social/humanitarian side of things. I would much rather work for a "good" company than for a "bad" one

Merv

Posted By Geoff Ferneyhough
To make the calculation realistic I looked at the the cost of agency staff required to cover absence, sick pay paid, and for a years worth of accidents came up with a ball park figure of £135 per day actual costs for an absence related accident. I use the HSE figure of £35 per event for a no absence accident.

I do realize that there are still signifcant hidden costs that are not included.

I use the figures above to enable a calculation of the turnover required at a 10%, 20% & 30% profit margins to offset the cost of the accidents.

Regards

Geoff

Posted By Tom Doyle
ISI has developed a tool for this purpose and you are more than welcome to try it out. (it's free) It currently displays dollar values but if you think it suits your needs I think I could easily change the format to pounds.

I don't seem to be able to find your e-mail address therefore I have no way to get the file to you. Contact me off line and I will send it over.

Cheers
Tom Doyle
Industrial Safety Integration

Posted By Kevin Fitzgerald
Thanks to all who have have responded to date. It has been very worthwhile.

Regards

Posted By Phil Grace
Kevin,
The HSE have produced a Ready Reckoner to aid with the calculation of accident costs:

http://www.hse.gov.uk/costs/index.asp

Phil

Posted By Kevin Fitzgerald
Jeff,

Would appreciate a copy of your spread sheet.

Regards,
Kevin.

Posted By Jeff Manion
Please send an email to me at jeff@groveservices.co.uk and will send information spreadsheet.

JM

Posted By Ian Langston
Hi Kevin,

I run the IOSH course on Accident Investigation. If you e.mail me I will send you some information on this subject. Better still give me a ring and I'll talk you through it.

Best wishes,

Ian