The Hidden Costs of Forklift Accidents

Posted by: admin on May 3, 2017

The Hidden Costs of Forklift Accidents

About one in ten forklifts are involved in accidents every year and cause almost 100,000 injuries annually. Besides the number of hurt citizens, forklift accidents cause many other catastrophes with one being the devastating costs.

When safety training has the power to help companies save thousands of dollars each year and prevent accidents, it’s an investment that pays for itself multiple times over. However, many companies skip this essential training and put their entire workplace in danger, risking the following hidden costs.

 

Equipment Damage Repairs and Replacements

It’s estimated that a forklift out of commission for repairs costs thousands of dollars every day in lost profit. Forklift damage contributes greatly to the amount of unnecessary costs to a company. It’s estimated that forklift damage can add as much as 5% to the cost of a standard truck lease. When considering an entire fleet of powered trucks, the costs add up to thousands of dollars of unnecessary, unplanned costs each year.

Workers’ Compensation

It is the employer’s responsibility to cover any necessary medical expenses for a worker injured in a work-related accident. The cost of forklift accidents involving injured workers can cost as high as $38,000 in direct costs per injured worker and $150,000 in indirect costs.

Loss of Production = Loss of Profits

According to the CDC, loss of productivity due to absent workers costs employers approximately $225.8 billion each year, or about $1,685 per employee. Accidents involving forklifts may not only involve loss of productivity from an injured worker, but also medical expense coverage, equipment damage, and a forklift out of active duty. When calculating the cost of forklift accidents, employers also need to take into account the management time spent looking into the injured worker case, investigating the accident, and supervising the tasks needed to get the go-ahead to resume work.

Fines and Legal Costs

OSHA requires that employers provide a hazard-free work environment and safety training to employees. As a result, if they find out a workplace was operating under unsafe practices and with untrained workers following an accident, costly fines will be involved. For non-serious violations, fines start at $12, 675 per violation. The penalty for willful or repeated violations is a devastating $126, 749 per violation. The cost of forklift accidents extends well beyond the price of equipment repairs and structural damage; it may cost an employer their business.

Loss of Staff

A lack of safety in the workplace often leads to reduced morale and increased stress among employees. When keeping workers safe is a low priority, profits and worker pay is often negatively impacted. And when fear is brought into the picture following workplace accidents, a company may find itself lacking its best employees who left seeking greener pastures. The average cost of replacing personnel equals to about $30,000.

For smaller organizations especially, the loss of key personnel may make it impossible to meet contract deadlines. The failure to complete projects can end a business, or tarnish a company’s reputation and lead to loss of new or repeat business.

Reduce Worksite Accidents with Forklift Certification Training

The overall cost of forklift accidents can lead to devastating outcomes, for both employees and business owners. The best and most effective way to prevent these costs is to enforce a strict protocol for health and safety, and to require that all operators complete forklift operator training and refresher training.

 

CertifyMe.net offers the most convenient online forklift certification program that is 100% compliant with OSHA regulations. Employers spend a few minutes creating an account and inputting their company’s information. Employees then can access the program and complete the modules at their own pace, taking on average one hour to work through.

At a miniscule fraction of the cost of forklift accidents and the repercussions, you can have your workers certified and prepared to prevent workplace accidents, injuries, damage, and fatalities for only $59.95 with CertifyMe.net.

5 EASY STEPS!

Follow step-by-step instructions to get OSHA compliant!

This low-cost program can be completed anytime, anywhere!

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