Episode 198 - Occupational Safety - Incident Investigation Direct Costs

Dr. Ayers explains the direct, measurable costs associated with incident investigations. These are the expenses organizations can easily see and track — but they still underestimate how quickly they add up.

  🧠 Key Themes 1. Direct Costs Are the “Visible” Costs

Direct costs are the expenses that show up immediately and clearly in budgets and reports. Examples include:

• Medical treatment

• Workers’ compensation

• Equipment repair or replacement

• Damage to materials

• Emergency response costs

These are the costs most leaders think about first. Sources:

  2. Direct Costs Are Easier to Calculate Than Indirect Costs

Dr. Ayers notes that direct costs are:

• Documented

• Quantifiable

• Often required for reporting

• Typically reimbursable or insurable

Because they’re easy to measure, organizations tend to focus on them — sometimes too much. Sources:

  3. Direct Costs Still Add Up Quickly

Even though they’re straightforward, direct costs can escalate due to:

• Multiple medical visits

• Specialist care

• Equipment downtime

• Replacement parts

• Temporary staffing

These costs can strain budgets, especially in smaller operations.

  4. Direct Costs Are Only Part of the Picture

Dr. Ayers emphasizes that direct costs are not the full financial impact of an incident. They are only the starting point — indirect costs (Episode 199) often exceed them by a wide margin. Sources:

  🚀 Leadership Takeaways

• Direct costs are the easiest to measure — but they’re only the tip of the iceberg.

• Medical bills, repairs, and workers’ comp drive most direct expenses.

• Even “simple” incidents can generate significant direct costs.

• Focusing only on direct costs hides the true financial impact of incidents.