Electrical safety terminology 3
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Lost Product ◦ Product in production at time of incident will
probably become “waste” – will need to be recycled or disposed of
◦ New production and sales may suffer following an incident – extended downtime = $
Lost Product
Equipment Damage and Integrity ◦ Equipment involved in the incident will need to be
cleaned and inspected .
◦ Temporary repairs or backup equipment may be short term options.
◦ Replacement equipment = $$
◦ Circuit damage may occur
during operation of
overcurrent device.
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Lost Product
Primary damage to equipment
Damage to the environment that results in cleanup or litigation costs ◦ Electrical incident may result in the release of
materials into the air or ground water.
◦ Environmental impact may lead to litigation.
Lost Product
Primary damage to equipment Damage to the environment that results in
cleanup or litigation costs
Decreased confidence inside and outside the organization ◦ Employees become hesitant to perform some tasks
due to safety concerns ◦ Community support may wane due to electrical
incidents, especially when the impact extends beyond the organization itself
OSHA fines ◦ Likelihood of action by OSHA increases with the
severity of an incident.
◦ Past incident and injury experience at a facility may influence the size of the fine.
◦ Avoiding the injury is the best way to avoid any resulting OSHA fine.
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OSHA fines
Criminal charges ◦ Employer engaging in “willful” violation that reflects
an attitude of little or no concern for the well-being of employees.
OSHA fines Criminal charges Litigation costs ◦ Costs associated with litigation have no upper limit in
the United States. ◦ Litigation from safety incidents is highly probable. ◦ Employers often settle to avoid lengthy legal
proceedings. ◦ Effective safety program reduces this risk Effective safety program demonstrates the company’s good
intent to protect workers
Ineffective program demonstrates the company’s indifference to safety.
OSHA fines
Criminal charges
Litigation costs
Increased insurance costs ◦ Premiums are often a reflection of the company’s
safety record.
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OSHA fines
Criminal charges
Litigation costs
Increased insurance costs
Retraining costs ◦ Review of training program effectiveness may be
necessary following an incident.
◦ At a minimum, additional awareness training may be needed.
OSHA fines
Criminal charges Litigation costs
Increased insurance costs Retraining costs
Costs related to investigating the cause of the injury ◦ Production is often put on hold during
investigation.
◦ The investigation may find the need to make changes to procedures and practices.
Implementing and maintaining an effective electrical safety program costs money.
The savings for having an effective program are difficult to determine.
Electrical safety programs should be developed to keep people safe instead of meeting a mandated standard.