Indirect costs of an accident are not paid through insurance and are often unseen or impossible to quantify.

• A. True
• B. False
• C. Not applicable
• D. Sometimes true

Answer: (A)

Indirect costs from an accident are the fallout that isn’t billed to insurance. While insurance often covers direct expenses like medical treatment, property repair, and lost wages directly tied to the injury, many other consequences don’t come with a claim. Think about downtime in production, overtime for other staff to cover the gap, training or bringing in temporary workers, investigation and administrative time, scheduling disruptions, and even longer-term effects on morale and customer relations. These outcomes can be spread across days or weeks and can be hard to assign a precise dollar amount, making them unseen or difficult to quantify. Because of that, indirect costs are not paid through insurance and are often hidden until you look at the broader impact of an incident.