Accident and injuries are a part of life. When accidents and injuries occur on the job, it costs employers a substantial loss of money. According to OSHA (Occupational Safety & Health Administration), it is estimated that in 2012 alone, costs of accidents have totaled about a billion dollars per week! And that only includes the direct compensation payments that the employee would receive while recovering, hospital expenses, and legal expenses. If an accident occurs that results in death, the direct costs could be much higher. It would make one wonder how businesses stay alive when having to pay out so much in accidents alone.
Indirect Costs
To add to the problem, there are usually many other indirect costs that occur in relation to an accident. They may include, but are not limited to
Costs to replace damaged equipment and/or buildings
Loss of production due to damage
Costs of training new employee if necessary
The Most Hazardous Types of Jobs
Depending on the type of job it is, the chance of serious injuries could occur rather frequently. Jobs like tractor-trailer driving, especially when driving around with hazardous material, can be especially risky and have a high amount of injuries and fatalities. Also jobs like roofing, building and construction, factory and warehouse work are also high on the list. Working in retail or in a convenience store can place workers in danger of being injured or killed as a result of a robbery. People have been injured or killed while teaching school, working in a post office, movie theater, or coffee shop. There is really no job in the world that is completely immune to its employees possibly becoming injured on the job. It is crucial for companies and people to make sure that they have a solid insurance plan from a reputable place like Law Offices of Mike Pines, APC to make sure that the organization is prepared for the worst.
How Businesses Set Aside Money For Accidents and Injuries
Every business should have sufficient insurance to cover possible injuries for their employees. The more dangerous the job, the higher the insurance. The problem is that insurance will not cover all of its employees’ injuries, only a portion. The remainder of the costs have to be paid somehow. Because the accident was work-related, the responsibility falls upon the employer. Another problem is that the insurance premiums will increase following a number of accidents. This can substantially decrease the company’s total profits. If the profits cannot keep up with the losses, the business will fail.
Is an Employer Responsible if Employee is Injured While Coming to Work?
The average person would probably assume that the answer to that question would be no, and they would mostly be right. However, there are exceptions to every rule and this rule is no exception. Whether or not the employer would be financially responsible for someone if they injured themselves while coming to work would depend on the job. For example, if the job requires that the employee travel, like from business to business or door to door and the person is hurt while doing so, then yes, the employer may be responsible. It may also apply if the employer agrees to run an errand for the employer as part of their job duties and gets hurt while doing so. This is called the coming and going rule and it usually only applies to those with traveling jobs.