Citation

Leopold E, Leonard S. J. Occup. Accid. 1987; 8(4): 273-294.

Copyright

(Copyright © 1987, Elsevier Publishing)

DOI

unavailable

PMID

unavailable

Abstract

This paper takes up the recommendation of the British Robens Committee Report on Safety and Health at Work, to undertake the detailed costing of occupational accidents on an industrial basis, similar to that advocated for the economy as a whole. The immediate objective of the research was to derive consistent cost estimates of industrial accidents across a broad spectrum of firms within the construction industry. A sample of 2100 construction accidents, stratified by accident severity, formed the basis of what was possibly the largest industry-wide appraisal carried out in this area. Questionnaire surveys were undertaken with employers and injured persons representing all sectors of work within the industry and all areas of Great Britain.The surveys established those direct costs of occupational accidents within the industry which are directly measurable in financial terms, as well as indirect costs which are measured first in labour time and subsequently translated into financial equivalents. These costs are then compared with external effects, such as insurance premiums, which are determined by accidents occurring within only a few firms in the industry but whose costs are carried by all of them together.The results of the survey, considered by injury severity, firm turnover range, sector of employment and the impact of the growing body of self employed and subcontracted labour, clearly demonstrate the wide disparity between average insurance premiums within the industry and all combined uninsured costs associated with any one accident. The paper concludes that only the very largest firms can hope to influence the size of premium by improving their safety performance over a period of years and that the additional 'hidden' costs measured by the survey are not, by comparison with insurance premiums, sufficient to act as an incentive to invest in greater accident prevention.