Elements Of The Overall Cost of an Accident

The overall cost of an accident is extensive and is made up of a number of elements or rather costs. The costs could be basic, direct or even indirect costs and all of them are essential in coming up with the overall cost of a given accident. Some of the elements that make up the overall cost of an accident include the following. Medical expenses, property damage, fire related wages, insurance administration as well as indirect costs (Friend & Kohn, 2010). All these elements are vital and none of them should be ignored if the overall cost is to be determined.

There exist some differences between direct and indirect costs when it comes to the cost of an accident. Direct costs are the costs covered by workers compensation insurance as well as other minor medical cost associated with the accident.  The average direct costs depend on the nature of the illness or injury. They could include medical costs, indemnity payments and program costs. On the other hand, the indirect costs are the additional costs linked with an accident, usually uninsured. The indirect costs are usually higher than the direct costs and they can therefore affect a company negatively. They may include lost of service or productivity standards, additional administrative costs and supervision time, emergency supplies, loss of business and Goodwill and accident investigation costs among others (Jallon, Imbeau& de Marcellis-Warin,2011).

It is essential to consider all cost associated with a given accident in order to make informed decisions. The indirect costs should never be ignored but rather investigated and estimated appropriately.

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