What are the two types of costs associated with workplace incidents?

The two types of costs associated with workplace incidents are best categorized as direct and indirect costs. Direct costs are those that can be directly attributed to an incident, such as medical expenses, compensation for injured workers, and property damage. These costs are often straightforward to calculate and identify immediately following an incident.

Indirect costs, on the other hand, may not be as immediately apparent but can have significant long-term impacts. These can include costs related to lost productivity, training replacement employees, increased insurance premiums, and potential legal fees. Indirect costs often continue to accumulate over time and can far exceed the direct costs associated with an incident, which is why it's essential for organizations to consider both types when evaluating the financial impact of workplace safety incidents.

Understanding this distinction allows organizations to grasp the full scope of financial ramifications that arise from workplace incidents, promoting a more comprehensive approach to safety management and prevention strategies.