IC 6333 The Cost of Accidents to Industry

A large number of operators of various industries in the United States do not appear to realize the great returns in dollars and cents which result from intelligently directed safety work . Managers of co 1 mines , metal mines , open-pit mines , quarries , steel mills , cement mills , oil rei meries , iron works , or other industrial operations , should by all means realize the great waste resulting from accidents , in order to appreciate the necessity for a continuous accident -prevention policy . While the prevention of accidents is worth while from the humanitarian standpoint alone , it has an equally important economic side , and before our mining industrial operations will be made as safe as they should be , it is apparent that this dollars and cents viewpoint must be given full recognition in order to bring before many of the men who run the industries the great importance of this phase of industrial management . : There is a tendency upon the part of the opera or who has not given thought to the cost of accidents ( and there are many mining operators of this type) to insure his company against compensation losses and against catastrophes for which he can secure insurance , and think he has done his duty ar an executive . Even though industrial operations were not compelled to pay compensation , and even if the management were not moved by humanitarian motives to try to stop accidents , it would pay many times over to carry on accident prevention work vigorously and continuously. : In some parts of the United States , the state compensation and insurance requirements are such that the operator does not receive a reduction in his insurance rate per men employed upon having made safety installations or upon having achieved a reduction of accidents in his plant . Under such conditions the management frequently does not feel encouraged to emert much effort in bettering the accident rate . However , when the responsible officials of a company realize the much greater harm to an operation which results from doing no accident - prevention work , and the great benefit in reduced costs which usually follows effective safety work , they should be inclined to do almost everything possible to reduce accidents , regardless of considerations as to accident compensations . There are enough indirect costs resulting from accidents to wreck many types of business ; excessive accidents result in disorganization and failure , while immunity from accidents usually means a smoothly running efficient organization .