Cost of Accidents Guide
This publication is produced as an aid for mining professionals engaged in the management of workplace accident costs. It presents an approach to the assignment of full company-controlled monetary costs to accidents, thus enabling these costs to be recognized and better controlled. As an additional benefit, non-monetary costs such as human suffering and environmental damage may also be controlled.
The purpose of this guide is to allow mining companies to estimate the total cost of accidents, utilizing both visible and hidden costs. Even though the magnitude of the hidden costs associated with a specific accident may be considerably greater than that of the visible costs, these hidden costs are often difficult to calculate due to the challenges associated with quantifying the specific magnitude of their economic consequences and the manner in which these costs are typically tracked in conventional accounting practices. This guide provides techniques by which valid estimates for hidden costs may be identified. An example problem demonstrating the considerations in determining the total cost of an accident is included. The guide will also be useful for internal applications, such as for garnering support for a stronger safety and health program. It may also be used in conjunction with an appropriate financial analysis tool to measure the effectiveness of safety and health programs.