IOSH Managing Safely Practice Test

What financial benefit can result from effective safety management?

1. Higher salaries for employees

2. Lower insurance premiums

3. Increased advertising budget

4. More training sessions for staff

The correct answer is: Lower insurance premiums

Effective safety management can lead to lower insurance premiums because a well-implemented safety program reduces the risk of accidents and incidents within the workplace. Insurance companies assess risk when determining premiums, and a track record of safety can demonstrate to them that an organization is less likely to have claims. This results in reduced costs for the organization, ultimately benefiting their financial bottom line. An organization that prioritizes safety is seen as lower-risk, thus encouraging insurance providers to offer better rates. Lower insurance costs allow companies to allocate resources more efficiently, which can then be channeled into other important areas of the business, such as investing in equipment, technology, or staff development.