Many organisations are aware from UK studies that, for every £1 they spend on insurance, there are accident generated losses of between £8-£36 that are not insured; others might be aware of American studies and findings that 80% of accident costs are, quite simply, hidden.
Beyond this awareness, few attempt to quantify the full extent of their own liabilities and uninsured losses, let alone identify their origins or causes. Even when attempts are made, losses tend to be grossly underestimated and poorly, if at all, specified; the same general absence of identification and quantification exists in relation to ‘near-miss accidents’.
Given that the outcome of an accident is largely a matter of chance and that the ratio of ‘near-miss accidents’ to ‘injury accidents' is in the region of 1200-1, the potential for uninsured losses to be massive exists in every organisation. That said, caution is required with the word ‘potential’. The importance of properly considering these as another type of hidden loss becomes obvious amidst indications that their cumulative costs far exceed the costs of the injury and loss producing accidents that industry tends to focus on; in other words, the far greater consumer of profit and uninsured asset remains unidentified, unaccounted for and unaddressed by most.
Health and Safety