The Costs of Not Being OSHA-Compliant

Every business is required to keep track if more than 11 accidents happen per year, according to the Occupational Safety & Health Administration (OSHA). But how many businesses are actually keeping track of what happens to their employees?

Not keeping track can be incredibly detrimental to a business. Adhering to optimal safety standards is the best way to keep quality employees and save money. It also means that your staffing agency won’t have to use their workers’ compensation insurance unless it’s absolutely necessary.

Over 5,147 workers were killed on the job in 2017: equivalent to more than 14 deaths a day, according to OSHA stats. Those that violate OSHA policies are subject to fines. While it might might not seem like a big deal, no one wants to spend their money on something they could’ve avoided. There are certain violations to be aware of. If you’re wondering what you need to know, these are the costs of not being OSHA-compliant.

Critical OSHA Violations

If you’re worried about violating OSHA standards, here’s some of the categories that any business owner needs to be aware about:

  • De Minimis – A technical violation, this one often causes the least problems. However, this kind doesn’t often issue citations or fines.
  • Other-than-serious – While a violation happens, it doesn’t mean that anyone was seriously hurt. For example, if a supervisor fails to post OSHA policies and someone gets hurt, it could be a $12,934 fine.
  • Serious – If an employer is aware of an existing hazard and doesn’t correct it, expect to pay a fine of up to $12,934.
  • Willful – When you commit a violation and you’re completely aware of it, it can be especially hazardous to your staffing insurance. Expect to pay a fine of $129,336 for the ordeal and possibly do some jail time as well.
  • Repeat – If you’ve been previously cited for an incident and it hasn’t been resolved, OSHA is going to keep track of it.
  • Failure to Abate – If an employer fails to solve the problem, expect to get fined. A $12,934 can be expected when an employer doesn’t follow through.

Other Costs

It’s not just about the fines that you’re going to pay for your staffing insurance. There’s other costs to consider, such as legal costs with other workers. On top of that, there’s going to be reputational damage to consider. Once your reputation is tarnished, you’re going to see an impact in your workforce.


About World Wide Specialty Programs

For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (800) 245-9653 to speak with one of our representatives.