What are considered the direct costs associated with workplace incidents?

Direct costs associated with workplace incidents refer to expenses that arise immediately as a result of an accident or injury occurring on the job. Medical expenses are a prime example of direct costs, as they include the immediate healthcare needs of the injured employee, such as emergency treatment, hospitalization, surgeries, and rehabilitation services. These costs are typically billed directly to the employer or the employer's insurance company, thereby having a straightforward financial impact on the organization following an incident.

In contrast, other costs such as replacement labor costs, litigation costs, and insurance premiums are considered indirect costs. While they contribute to the overall financial burden on a company following an incident, they do not result from the incident itself but can arise later in the process, making them less immediate than medical expenses. By focusing on medical expenses as a direct cost, it becomes clear that these costs are essential to address promptly to ensure the well-being of employees and to manage the company's liabilities effectively.