The Murky World of EHS Non-Compliance Costs

Administrative fines and enforced remediation costs are among the obvious and often highly publicized consequences of failures to comply with environment, health and safety (EHS) laws. But what about the things that are much more difficult to assess, predict or calculate?

Consider expenses such as those associated with workplace incidents and accidents. These can be unpredictable financial obligations, including payments for insurance premiums or workers’ compensation plans that cover resulting harm, necessary medical expenses and compensatory benefits for those who are injured. What about litigation?

The only way to lower the cost of workers’ compensation in the long run is to lower the frequency and severity of the claims that are driving those costs. It can be a tall order, particularly because premiums have been steadily rising. In the United States, the National Academy of Social Insurance (NASI) estimates employer costs associated with workers’ compensation totaled US$94.8 billion in 2015 … Read more...