NorthStar Insurance Services, INC.
When workplace injuries happen there are direct expenses, which include covering medical and rehabilitation costs, which Workers’ Compensation insurance is designed to do. There are also indirect costs from an injury that impact a manufacturing operation. The American Society of Safety Engineers estimates that indirect costs and impacts of a worker injury are up to 20 times greater than direct costs. In the manufacturing sector, the extended absence of even one key employee due to injury can disrupt an entire operation. Many manufacturing employees have specialized skills that are not easily replaced on short notice. Others have knowledge of legacy systems that is literally irreplaceable.