The cost of safety

Table of contents

Ocean image with a dollar signs floating in the water

Is it worth it?

We often get asked is the cost of safety worth it.

Well, the simple answer is yes but unfortunately safety has gone mad over the last few years and as our principal says managing between what is required under legislation and making it workable in real life is difficult.

The cost of implementing “workable” safety systems is well worth the money you spend on it. In fact, many of our clients often say to us that it is the best insurance available.

We occasionally hear potential clients say “it’s not worth the money” but over the last few years there have been multiple cases of owners and operators saying “I wish we spent the money” as they have been on the receiving end of hefty fines and in some cases received jail time.

In one case the owner said the cost of implementing a safety management system was to much as he had been operating for more than 20 years without a serious incident. Guess what? Only months latter he was involved in a serious incident which included a death.

The end result was WHS found no documented safety management system, no operating or emergency procedures and no training. On top of that he was operating machinery he did not have a licence to operate.

Outcome: A hefty fine (which was more than the cost of the safety system) and several years jail time plus he lost his business so…is safety worth it. We’re guessing he may think so now.

The big problem with safety is that you can get bogged down with it both in time and money which takes you away from generating income. This is why many say the cost of safety is not worth it and…we’re inclined to agree with them to some degree.

As a business or vessel owner you need to have a safety system in place but it needs to be a workable system that can be defended if need be then it becomes a worthwhile investment. We see too many “safety” people go overboard with procedures that are no workable in many cases, then the system is not worth the cost.

We have even had one company present us with their procedures which were from a school – and therefore not representative of a commercial operation. This type of approach is not appropriate and hard to defend in the event of an incident.


Shorlink’s Recommendation

Our best recommendation is to ensure you have a “workable” safety management system in place that is defendable. Start developing one now or…

…if you’re looking externally to develop one, make sure you check their credentials thoroughly to ensure they write a “workable system and procedures” that meet the legislative requirements for both your business and/or vessels. This may mean meeting Marine Order 504, the NSCV and/or WHS legislation to ensure you are compliant and legally covered in case of an incident.


Tip

Best tip is to ensure whoever is developing your safety management system does not write a “what to do” manual but develops a “how to do” system that incorporates policies, operational and emergency procedures and for shore-based businesses escape plans at a minimum.

Shorlink offers this service, and you are welcome to contact our office for a free consultation to see how we can develop a workable system for:

  • Vessels to comply Marine Order 504
  • Shore-based businesses to comply with ISO 45001

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