Risks, costs, and business impact of workplace accidents

No industry is safe from workplace accidents, as they can occur on construction sites, in warehouses, retail stores, office spaces, and more. An injury on-site cannot only impact an employee or visitor’s health and well-being, but it can place significant pressure on a company and the economy.

Keep reading to learn more about the risks, costs, and business impact of workplace accidents.

The Cost of an Accident On-Site

According to the HSE, workplace injuries and ill health cost Great Britain a total of £21.6 billion in 2022/23 alone. Accidents can occur for many reasons and cost companies a considerable sum. Various factors determine the cost of an on-site accident, but the average business will incur between £8,000 to £10,000 per incident.

Fortunately, you can avoid and reduce workplace accident costs with tailored safety equipment to match your operations and industry. For example, you can prevent accidents with personal protective equipment (PPE), clear safety signs, fire safety equipment, first aid supplies, traffic and car park management, and more.

The Risks of a Workplace Accident

Workplace accidents relate to non-fatal and fatal injuries on-site. Unfortunately, no business is safe from minor, major, and fatal injuries, which can occur for various reasons, such as slips, trips, and falls, manual handling issues, machinery or vehicle accidents, exposure to hazardous materials, fires, and explosions.

Unfortunately, the above accidents can kill, as the Health and Safety Executive (HSE) reported that 138 workers died from workplace accidents in the 2023/2024 period. While accidents can happen in any industry, fatal accidents typically occur in construction, agriculture, manufacturing, transportation, wholesale and retail, accommodation and food services, and waste and recycling.

Non-fatal injuries can take a toll on a company’s finances, too. Unfortunately, they are common across every industry, as 604,000 employees sustained a non-fatal injury in 2023/24.

Fatal and non-fatal accidents can cause various risks to the business, as well as its employees. For example, they can lead to expensive business downtimes, compensation claims, legal fees, medical expenses, and higher insurance premiums. Also, they may result in further downtimes due to the need for additional health and safety training and time recruiting new or temporary employees.

What’s more, employers who fail to adhere to the UK’s strict health and safety regulations are likely to face various legal repercussions, such as costly lawsuits and significant fines and penalties. For instance, a Cambridgeshire grain store received a £180,000 fine following a fatal workplace accident.

Due to the intense financial pressure of a workplace accident, some businesses might have no choice but to close their doors for good.

How It Could Impact Your Business

A workplace accident can impact a business in many ways. In addition to financial repercussions, it can lead to a loss of productivity, as a reduced workforce can slow down operations and place pressure on the rest of the team.

A company may need to hire and train permanent or temporary employees or manage the team’s fears or anxieties, as they might feel unsafe or afraid at work. Also, the incident may impact team morale and increase stress levels, leading to higher employee turnover.

A tragic workplace accident could damage a business’s reputation too. For instance, it might receive negative press attention that impacts public perception and lowers a company’s annual revenue. A serious workplace accident may cause further legal scrutiny, as your business might experience more frequent audits and inspections to ensure it regularly adheres to health and safety standards.

Conclusion

One serious or fatal injury may damage your company’s finances. It can lead to increased long-term operating costs, missed business opportunities, lower profitability, and a disengaged, unproductive workforce. For this reason, businesses cannot afford to ignore health and safety and must take steps to protect all employees, customers, and visitors.