Forklift accident costs that may turn out to be expensive in the long run
Some business owners may find it hard to calculate the average forklift accident costs. The forklift accident costs may vary from repair stores to repair stores. There is no one set figure. However, there is an average range across all forklift repair stores.
That means one forklift repair shop may charge you on the higher end and another one may charge lower. If you are to take all the costs for the repairs, it will boil down to average forklift accident costs.
However, the accident costs may not be just the monetary and financial aspects. There are other areas that can be affected. That means the affected areas can contribute more to the accident costs.
As accidents happen, it means your company can and will experience a lot of issues. In this article, we will cover some of the areas that contribute to the average forklift accident costs. We will try our best to present as many average costs as we can.
Cost of Forklift Accidents Revealed
We are sure that you have a burning question: what will it cost if you have a forklift accident. Here are some of examples.
1. Legal costs, fines, and compensations
It’s only normal that if your forklift gets into a workplace accident, you will need to pay for repairs and whatnot. You will also have to pay for legal costs, fines, and worker compensations too.
In some countries, these costs can get very high. For example, in the UK, such costs can go up to £40,000-£200,000. In the US, replacing personnel equivalents can cost approximately US$30,000 per personnel. It’s a costly sum of money to fork out.
If you have the money to pay, it’s probably a good thing. But on the whole, it will not look good for your company financially if accidents keep happening. Even though you have the money to pay, imagine having to pay for replacements and whatnot. That money can gradually add up to a lot of money in the long run. Just make sure you don’t let workplace forklift accidents happen often or at all.
2. Poor HSE culture that encourages staff turnover
Nobody likes to work in an unsafe workplace. Have you ever thought about not having proper HSE in your forklift warehouse can contribute to a high staff turnover rate? Well, it can happen. Labor costs often are the largest expense in the warehouse. In some warehouses, it can contribute up to more than ½ of a warehouse’s total operation cost.
Do you know what will happen if there is a high employee turnover rate? It can bring about a negative cycle, which increases the requirement for temporary staff. Sometimes, these temporary staffs are poorly trained, which can easily increase the risk of workplace accidents. It can further escalate problems at the workplace. At the same time, if your business remains understaffed for a long time and does not meet client requirements, its reputation may be at risk.
3. Human fatality
Having a damaged forklift is bad enough. However, when it involves a human being, things can get all the more problematic. It’s common for forklift accidents to leave victims with injuries behind. As unfortunate as it is, it can result in lengthy recovery periods for the victim and an extended time off work.
If the human fatality gets any worse, it can be life-changing experiences for the victim. Perhaps even compensation won’t even help the victim at that rate. All you need to have in place is a solid health and safety measure that is actively followed and observed.
4. Increase in work downtime and affects your business profits
As unfortunate as it seems, when any businesses are met with accidents, it’s only natural that it stalls production. The production stoppage may decrease your business profits. It’s tempting to cut corners just to accelerate production and save that few bucks. However, when encountered with accidents, you will find that you will pay more than save any money at all.
Having said all of that, we recommend that you have regular site maintenance and routine checks on your forklifts. It will obviously have an adverse effect on employee wellbeing and the future of your business.
We strongly recommend that you do routine checks on your forklift and its equipment. Also, do regular checks of your forklifts’ surroundings. The average forklift accident costs are not something you should ignore or leave on the back burner. As soon as you notice something isn’t right, contact a forklift spare part store as soon as possible. If you need any assistance or advice, feel free to reach out to us.