Indirect Costs of Accident – Definition and Top 5 Examples of Indirect Costs

Indirect costs arise indirectly as a result of accident. Indirect costs are often difficult to quantify precisely and are hard to identify. These are generally 8 to 36 times greater than direct costs. Apart from this, indirect costs are often difficult to be quantified precisely and may be hard to identify.

Examples include:

  • Reduction in staff morale
  • General hiring difficulties
  • Staff retaining difficulties
  • Loss of customers good will following delays in production and fulfilling orders
  • Damage to public image and business reputation
  • Damage to industrial relations
  • Strikes

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