The Real Cost of Construction Site Accidents
Though many construction companies can find the Occupational Safety and Health Administration (OSHA) standards expensive or unnecessary, the alternative usually means on-site accidents. A robust safety program can help shield your company from both the anticipated and unseen costs of construction site accidents.
What do on-site accidents really mean for construction companies?
Increased insurance costs
Workers’ compensation insurance is frequently a construction company’s largest expense next to labor costs. Even small claims can result in a huge rate hike that is sure to put a dent in your budget. Depending on your profit margin, recouping cost of an on-site accident could mean losing money on future jobs to manage your increased rate.
This is particularly worrisome for companies operating without workers’ comp coverage. A claim can be financially devastating for small businesses, but if your employees are not covered, the workers’ compensation charges may affect everything from customer relations to your ability to obtain permits. In the event that no coverage is available, you can probably expect a lawsuit. Lost customers, steep legal fees and medical expenses can be just the start of a very expensive mistake.
Delayed project completion
Having an unexpected loss of labor and managing workers’ compensation claims can make already tight deadlines that much more difficult.
To combat these costs, many contractors are choosing to make safety a part of their daily routine. Inspect your job site, have the proper safety plan in place, train your employees on the safety plan and the potential hazards of their jobs, and don’t cut corners on safety. You can also turn to risk management firms, such as CLC, to help establish a solid risk management program with our human resources outsourcing
Focus on the growth of your business, and let us handle administrative concerns.
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