Studies show that the ratio of indirect costs to direct costs varies widely, from a high of 20:1 to a low of 1:1. OSHA has shown that the lower the direct costs of an accident, the higher the ratio of indirect to direct costs (ranging from 4.1/1.0 to 1.1/1.0). Examples of indirect costs include training replacement employees, accident investigation and implementation of corrective measures, lost productivity, repairs of damaged equipment and property, and costs associated with lower employee morale and absenteeism.
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Risk Profile Improvement