WHAT DO THE CHANGES MEAN TO THE INSURANCE OF PAYROLL?
What often happens when a loss occurs is that more staff are needed to do the work of the damaged machine etc than before. This can mean additional overtime or the hiring of additional staff.
In some cases, the staff in one city or town are moved to another plant owned by the same company or a competitor, and a nightshift is run to keep up production. Even here penalties, including nightshift, meal and living away from home allowances, increase the labour cost as a percentage of Turnover.
As an aside, it is often the staff considered less skilled and expendable who prove their value in these circumstances. The receptionist who knows all the customers by name, or the store man who picks the orders and labels them by hand, when the computer is destroyed and cannot list the location of the order or print the delivery labels.