Page 107 - Petrosphere - Loss Control Management (LCM) Training Manual V 1.0

106 Module 13: Property Damage and Waste Control Program Loss Control Management (LCM)

The question now is, how can property damage and waste control program be effective and be
practically applied?
At this latter point, we will clearly define the practical steps that can be taken by almost any
occupational establishment in setting-up a program to control the major source of loss.

Size and Scope of the Problem
To date, it is common knowledge among those who work in an industry that there are many more
stoppages from property damage accident than from those terminating injuries.

Example 1:
An automotive truck manufacturing plant
manager reported the direct cost of property damage
in the previous 12 months to be $4,605,000.00, this
figure was approximately 10 times the cost of the
workers’ entire compensation.

Example 2:
An oil company reported general property damage costs at
$5,740,000.00 compared to $60,500.00 for injuries, motor vehicle
damage costs for this company were listed separately and
represented at $276,800.00 in addition to property damage loses.

Example 3:
A mining company’s record shows the reporting of
892 property damage accidents for the year costing
$615,750.00 as compared to 157 reported injuries, costing
$37,562.00.

Example 4:
A steel plant’s records indicate a reported

property damage costs for 12 months at $928,544.00
while its worker total compensation costs for injuries is
less than $100,00.00

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