Cost of forklift accident Vs cost of prevention

Warehouse safety barriers, forklift safety barriers, mezzanine pallet gates

Forklift near misses happen everyday and most go unrecorded. Accidents can happen just far too quickly.

Possible scenarios

  1. Forklift hits main conveyor line halting dispatch for multiple days until repaired
  2. Forklift hits and injures staff member walking in factory
  3. Forklift hits end of pallet racking bringing it all down
  4. Forklift hits structural column weakening support and damaging roof, or,
  5. Forklift falls off edge of loading dock crushing the driver

cost of forklift accident vs prevention

What would a forklift accident cost your company? Let’s choose scenario 3. “Forklift hits end of pallet racking bringing it all down.” Consider the below points to get an estimation of the cost.

  • Value of stock effected/damaged? (e.g. all stock on racking)
  • Daily sales x duration of disturbance
  • Cost of asset repairs
  • Temporary storage rent and freight
  • Rubble removal costs
  • Workers compensation
  • Legal fees and fines
  • Long-term customers lost to competitors due to inability to supply
  • Time to restock (consider import/manufacturing lead times)
  • Possible side effect (e.g: fire, chemical spills, soaking from sprinkler system, etc)

Costs can so quickly add up to thousands and millions in the event of an accident. It is enough to close a company indefinitely.

Now consider the cost of prevention

Although we can never be 100% accident proof, we can still work towards prevention. It differs from warehouse to warehouse but spending $20,000 on barriers and preventive measures could save you an excess of $2,000,000 in damages.

cost of forklift accident vs prevention

What about insurance?

Sure, insurance should cover most of this for you however there are some damages to the company that can’t be quantified or logged which therefore can’t be claimed. Furthermore, if your company has failed to put adequate preventative measures in place, you or your company may be held accountable. If there is a fatality, maximum penalties include a huge fine and lengthy jail sentence.

Enough of the scary stuff.

So, let’s talk more positive. You can start improving your safety today by analysing your needs and installing the appropriate Verge safety barrier products to help prevent any such accident. Call us today – we’re here to help.

forklift accident prevention

Be Safe Not Sorry! – The cost of prevention is cheaper than the cost of doing nothing at all!


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