When you are running a business, the last thing you want to happen is a workplace accident or injury. In fact, among the many challenges that business owners face, a workplace accident is one of the most dreadful ones. Accidents in the workplace not only lead to physical harm but emotional stress for employees and employers.
According to a survey of the U.S. Bureau of Labor Statistics, 5,333 employees died from a work-related injury in 2019, a two percent increase from the previous year’s 5,250. Workplace health and safety accidents can create a negative impact on a business in plenty of ways. These can cause increased absenteeism, loss of productivity, temporary or permanent closure, and reduced staff morale.
Considering the harmful effects of workplace accidents, employers and staff should work together to take the right steps to create a safe workplace environment. But accidents happen, and their possibilities often hang over a business. With this in mind, we are listing down how a workplace accident can affect a business. Learn from these scenarios to prevent them from happening.
Disruption in business operations
Imagine this scenario: An employee driving a company car crashes into a speeding truck while on his way to a crucial meeting that involves a VIP client. The 911 calls the office, alerting his coworkers about his state. The sudden news leads to work interruptions and canceled meetings. The company calls for a discussion about how the accident happened and who is to blame. The owner consults a car accident lawyer while employees are too upset to continue their work.
In the event of a workplace accident, work will certainly get disrupted. The duration of disruption may depend on the severity of the injury. If the accident is serious, a few hours of disruption is possible. If an employee dies, the company will have to handle all incurred damages, from providing support to the grieving family, hiring a replacement employee, to managing the insurance of the company car.
For the business, disruption is a serious waste of productive hours. Even a single day of disruption leads to the loss of valuable working time. Obviously, a workplace accident does not portend well for any business. As a result, disruption of work because of a workplace accident becomes an ultimate worry for a business owner.
The financial state of a business depends on the smooth functioning of its everyday operations. Once the operation gets disrupted by a workplace accident, it can create a severe impact on productivity. A disruption in the workflow can limit the company’s ability to run at full capacity, affecting its financial resources.
An injured worker becomes a considerable loss personal injury compensation for a company if they cannot entertain queries from potential clients. When employees get distracted, this could lead to lesser output, inability to close sales, and failure to take important calls. All these acts can lose potential customers and money for the company.
A workplace accident can also lead to neglected deadlines. A company can lose a contract and face severe penalties for the delay. This can affect the financial aspect of a business by shrinking the profit margins, with effects that can last for a week or a month.
The cost of damages to an injured worker is also another financial effect of a workplace accident. It may include fines or legal fees a company has to pay for endangering an employee. The medical expenses and compensation may also depend on the extent of damages and treatment for the injured worker.
Suppose a company fails to provide the needed support. In that case, a worker may hire an attorney to take legal action against the owner to make sure they receive full personal injury compensation. All these aspects can put a huge strain on a company’s finances.
Once a workplace accident happens, the company comes under a cloud, tarnishing its reputation from the media coverage and wagging tongues. People will start having suspicions that the owner doesn’t care about the employees and the company is not following safety protocols to protect its workers. For this to happen, a workplace accident has to be serious since minor accidents are more common.
In the event of a serious accident, the media is likely to report the case about the company involved. The accident may appear in a major TV channel or a headline of a local newspaper. More often, a news report leans toward the victim, making the company the main villain. This is followed by gossipmongers, who tend to distort the truth.
For potential clients and partners, a company with a negative reputation can be a red flag. Any chances of doing business are forgotten, and trust is seriously undermined.
Whether big or small, workplace accidents can have terrible consequences for a business. Accidents can lead to wasted productive hours, loss of financial resources, and damaged reputation. Thus, businesses and employees should take careful steps to prevent workplace accidents to ensure a safe and secure working environment for everyone.