Insurance pays only the obvious costs of an accident. You pay the hidden costs out of your profits.

Hidden costs of loss are unrecognized costs such as losses in labor productivity, disrupted schedules, supervisory and administrative time, replacement of damaged material and equipment, loss of customers the list goes on and on.

Hidden costs typically run from four to seven times the insured' direct cost. They include:

• Time lost from work by injured employee
• Economic loss to injured employee's family
• Lost time by fellow workers
• Loss of efficiency due to break-up of crew
• Loss of time by supervisors
• Cost of training a new crew
• Damage to tools and equipment
• Spoilage - fire, water, chemical, explosives, etc.
• Failure to fill orders
• Overhead cost(while work was disrupted)
• Miscellaneous - There are at least 100 business items of cost that appear one or more times with every accident.

You can minimize the hidden cost of accidents by making your business a safer place to work. Farmers Loss Control Services can help.

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