What is The Cost of Workplace Accidents & Injuries at Inns?

Workplace injuries can be a major financial hit for business owners. Not only can they cause physical and emotional harm to those involved, but they can cost hundreds of thousands of dollars. The extra expenses to pay for injuries can have a powerfully negative effect on your business’s bottom line. Protect yourself and your business with these preventative measures to reduce workplace injuries.

The Real Cost of Workplace Injuries

It may be surprising to hear that most inns do not have a high-profit margin. Expenses take up a large chunk of the income, and competition limits how much you can charge for the services provided. Each time an accident occurs, the cost of the injury must be subtracted from profits. Consider the following two examples:

1.  At a 5% profit margin, an extra $20,000 in sales or income is needed to compensate for a $1,000 injury.
2.  If the profit margin is nearer to 1%, an additional $100,000 worth of new income is necessary to maintain that profit level for the same injury.

As you can see, that adds up to a lot of extra income just to compensate for a single injury. Thus, every time a worker gets hurt on the job, other employees are affected too. The business may be forced to make difficult budget decisions such as cutting hours or jobs. Further, some employees will need to work extra hours to make up for the injured employee’s lost time.

Also, recovering from an injury can mean time away from work, reduced compensation, painful rehabilitation and frustrating adjustments to daily life for the impacted employee.

Practice Prevention

Though operating at a profit is essential to success, one of your top priorities should be keeping your employees safe and healthy. That’s why it’s essential to practice good safety principles, including following all safety procedures, even if they seem unnecessary. It’s equally important to train your staff on the safety protocols as well. If everyone observes the safety precautions, you can limit on-the-job accidents.

CBIZ Innkeepers Insurance

It’s always wiser to spend a bit more time doing the job safely than to risk getting a serious injury. Think of training and practicing good safety as both pain-free and profitable — a win-win situation for everyone. To discuss your unique risks and to learn more about coverage options, connect with a member of our team.

This blog may contain scenarios that are provided as examples only. Coverage is subject to the terms, conditions and exclusions of the policy issued. The information provided is general in nature and may be affected by changes in law or the interpretation of such laws. The reader is advised to contact a professional prior to taking any action based upon this information.

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