What type of costs are associated with workplace incidents that result in product harm?

The costs associated with workplace incidents that result in product harm are best categorized as product damages costs. These costs specifically relate to the financial impact stemming from damage to products, which can occur during production, handling, or distribution due to workplace incidents. When products are harmed, organizations not only face the immediate costs of repairing or replacing the damaged goods, but they might also incur further expenses related to lost sales, reputational damage, or even legal liabilities stemming from the incident.

Understanding product damages costs helps organizations assess the full economic impact of safety failures and underscores the importance of implementing robust health and safety measures. While other types of costs, such as compensatory costs, may address broader liabilities (including payments to injured employees or external claims), product damage costs focus directly on the financial implications tied to the specific damage inflicted on products.