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Insured and Uninsured Costs

Employers consistently take out insurance to cover themselves against potential losses caused
by such events as fire and theft. In many countries, there is a legal requirement that employers
also required to have insurance against certain types of liability. However, many of the costs
involved in respect of accidents at work are not covered by insurance.
Uninsured costs include all indirect costs as well as those relating to loss of production as a
result of many types of incident. In addition, the insurance to cover loss in respect of certain
events may be void where it may be shown that the employer has not taken adequate
precautions to prevent the incident. It has been estimated that uninsured losses are greater than
the insured losses.

Accidental Costs in an organisation

ENSIGN| Unit IG1 – Element 1 – Why We Should Manage Workplace Health and 3
Safety