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Questions and Answers
What is the minimum cover required for Employers' Liability Insurance in the UK?
What is the minimum cover required for Employers' Liability Insurance in the UK?
What type of costs are concerned with the immediate expenses of an accident?
What type of costs are concerned with the immediate expenses of an accident?
According to the Employers' Liability (Compulsory Insurance) Act 1969, who is responsible for the health and safety of employees at work?
According to the Employers' Liability (Compulsory Insurance) Act 1969, who is responsible for the health and safety of employees at work?
What type of costs are concerned with the less obvious expenses of an accident?
What type of costs are concerned with the less obvious expenses of an accident?
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Why is it important to prioritize health and safety in the workplace?
Why is it important to prioritize health and safety in the workplace?
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What type of insurance is required by law in the UK for employers?
What type of insurance is required by law in the UK for employers?
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What is the main difference between insured and uninsured costs?
What is the main difference between insured and uninsured costs?
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What is the purpose of highlighting the financial costs of incidents to management?
What is the purpose of highlighting the financial costs of incidents to management?
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What is an example of a direct uninsured cost resulting from an accident?
What is an example of a direct uninsured cost resulting from an accident?
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What is the estimated proportion of uninsured costs compared to the actual incident cost?
What is the estimated proportion of uninsured costs compared to the actual incident cost?
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Which of the following is an indirect uninsured cost resulting from an accident?
Which of the following is an indirect uninsured cost resulting from an accident?
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What is a potential cost to the engineering firm as a result of the accident?
What is a potential cost to the engineering firm as a result of the accident?
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What is one of the benefits of a motivated workforce in terms of organisational image and reputation?
What is one of the benefits of a motivated workforce in terms of organisational image and reputation?
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Why did the Managing Director of the engineering firm get prosecuted?
Why did the Managing Director of the engineering firm get prosecuted?
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What can organisations achieve by demonstrating compliance with health and safety regulations?
What can organisations achieve by demonstrating compliance with health and safety regulations?
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How long was the employee unable to operate machinery after the accident?
How long was the employee unable to operate machinery after the accident?
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What is a consequence of ineffective health and safety in an organisation?
What is a consequence of ineffective health and safety in an organisation?
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What is one of the indirect costs associated with accidents?
What is one of the indirect costs associated with accidents?
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What is an example of uninsured costs that can affect the company's reputation?
What is an example of uninsured costs that can affect the company's reputation?
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What is the result of an inspector's visit to a site with a history of incidents?
What is the result of an inspector's visit to a site with a history of incidents?
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Why is it important for organisations to check their insurance policy?
Why is it important for organisations to check their insurance policy?
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What is one of the benefits of effective health and safety in an organisation?
What is one of the benefits of effective health and safety in an organisation?
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Study Notes
Morals & Money: Financial Costs of Incidents
- Employers' Liability Insurance is mandatory in the UK, with a minimum cover of £5 million, as required by the Employers' Liability (Compulsory Insurance) Act 1969.
Direct and Indirect Costs of Incidents
- Direct costs include immediate expenses such as equipment damage, worker absences, fines, and compensation, some of which may be insurable.
- Indirect costs include less obvious expenses like replacement labor, cleanup, lost sales, and workforce morale, which cannot be insured against.
Insured and Uninsured Costs
- Insurance policies only cover a small proportion of the costs of accidents, with uninsured costs estimated to be about ten times the amount of the actual incident.
- Uninsured costs include indirect expenses like equipment repair, hiring temporary labor, and lost productivity.
Benefits of Effective Health and Safety
- Effective health and safety can improve production and product quality, boosting workforce motivation and reducing staff turnover.
- A motivated workforce and improved productivity have a positive impact on the organization's image and reputation, leading to stronger relationships and increased business.
Consequences of Ineffective Health and Safety
- Ineffective health and safety can lead to costly tendering for new business, lost productivity, and damaged reputation.
- Insurance issues can become less costly through compliance, leading to lower premiums.
- Internal resources are not drained due to accident and incident investigations, court attendance, and enforcement officer visits.
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Description
Learn about the financial costs of incidents, insured and uninsured, and the benefits of prioritizing health and safety in the workplace.
