ABSTRACT

We can simply define an accident as an unplanned event that interferes with job or task completion. When an accident occurs, someone will lose valuable time dealing with the event. An accident can result in some kind of measureable loss such as personal injury or property damage. We can also classify an accident event as a nearmiss with no measurable loss. Accident causes normally result from unsafe acts, hazardous conditions, or both. Accident prevention efforts must emphasize development of necessary policies, procedures, and rules. The hazard control plan should outline organizational objectives, goals, and responsibilities. The organization needs to evaluate the priority and effectiveness of accident prevention efforts. The costs of accidents should provide motivation for senior leaders to support hazard control efforts. Accidents resulting in injuries or property damage can cause interruption of production or other operations. Hazard control managers must endeavor to obtain management’s attention and support by communicating to them losses in terms of dollars and manpower utilization. We can calculate or closely determine the direct costs associated with an accident. However, determining indirect costs can pose a challenge to the best managers and hazard control managers. Traditionally, most hazard control and safety personnel held the view that indirect costs of an accident far exceed the calculated or known direct costs. Fred Manuele wrote a thought-provoking article entitled Accident Costs, Rethinking Ratios of Indirect to Direct Costs, which appeared in Professional Safety in January of 2001. His article encouraged safety to refrain from using any ratios that data could not accurately support. He wisely pointed out that the direct costs of accidents did increase significantly in recent years due to indemnity and soaring medical costs (Table 2.1).