OSHA Violations Just The Tip of the Iceberg

Interfaith Medical Center Cited for Safety and Health Hazards; $48,000 in Fines Proposed

The U.S. Department of Labor’s Occupational Safety and Health Administration recently cited Interfaith Medical Center, in Brooklyn, for 14 violations of health and safety standards. The hospital could face $48,000 in fines. Here’s a quick back of the napkin analysis of all of the other ancillary costs this company incurred from this poor OSHA Inspection.

Additional Costs Incurred Beyond the OSHA Fines:

(The Quintessential Net Income Loss –income your business would have had except for a particular event).

Job shut down

Employee moral & turnover

Bad press, advantage to your competitors who may seize on this in future RFP’s

Legal Costs

Increased Insurance Costs at renewal. ( Insurance underwriters love googling your company for bad news!)

Cost to remediate and fix the errors (not in your budget)

Future litigation from sub contractors employees, building tenants, building owner now that this is out there.

OSHA regulations require that employees who are in close proximity to asbestos or potential asbestos-containing material be informed and trained about the hazards and safety precautions associated with it. This is essential because Asbestos can cause serious illnesses like mesothelioma and lung cancer. Detailed information on asbestos hazards and safety is available online at http://www.osha.gov/SLTC/asbestos/index.html.

OSHA’s inspection results of Interfaith Medical Center :

The hospital failed to provide adequate asbestos training for staff and employees who do demolition and renovation.

It failed to properly label asbestos-containing insulation and floor tile.

It did not inform outside contractors of potential asbestos-containing material in and around their work areas.

Disposed asbestos-containing material in the hospital dumpsters.

Failed to train trade employees on the hazards; provide them with data safety sheets; and develop a written hazard communication program for cleaners, lubricants, acetylene, naptha and other hazardous chemicals.

Lastly, the inspection found improper storage of compressed gas cylinders and electric shock hazards from exposed and improperly spliced wiring.

This inspection happen to occur at Interfaith, but what if it occurred on your job site or project? This is the quintessential Net Income Loss, (income your business would have had except for this event). This is what I mean that 80% of a companies losses occur outside the cost of the insurance policy. The These conditions resulted in 10 serious violations totaling $44,000 in fines and 4 other violations with $4,000 in fines. The fines where the cheapest component of this problem, some of the residual issue last years afterwards causing your net income loss to persist for years, and years.

Do not let this happen to your business. The harm goes way beyond the $48,000 in fines. Talk to an expert at Metropolitan Risk Advisory today to make sure that you’re protected. We specialize in business insurance, risk management, and workers comp insurance in the greater NYC area.