Understanding the Arc Flash Incident Liability & Costs
Colton Rossiter
2023 / 08 / 31
8114
When you think about the dangers of electricity, is an arc flash the first thing that comes to mind? Probably not.
Although electrical shock is more common, the consequences of an arc flash incident in the workplace can be far more devastating.
In this blog we will discuss the dangers of arc flash incidents, the direct and indirect costs and the importance of hazard awareness and mitigation.
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Arc Flash Incidents: Statistics and Facts
An arc flash is essentially an electrical explosion that can cause 2nd and 3rd degree burns as well as other injuries including blindness, hearing loss, nerve damage and cardiac arrest.
Some common causes of arc flash events can be human error, improperly rated test equipment, or even pest control issues, like a mouse bridging the bus bars with its body.
It is estimated that more than 5-10 arc flash incidents occur every day in the United States, resulting in 7000 burn injuries, 2000 hospitalizations, and around 400 fatalities per year.
If you would like to understand more about an arc flash and what causes one, here is a great article.
How Much Does an Arc Flash Cost?
The potential damage from an arc flash can be extensive, often having many unexpected indirect costs as well.
An arc flash incident will typically cost between $250,000 to $750,000 (repair, maintenance, fines) but with indirect costs, could be as high as $15,000,000.
The cost of arc flash damage could include repairs, new equipment, legal fines, increased insurance premiums, hospital bills, emotional distress fines, replacement workers, Court costs, not to mention all that down time to the facility.
What Is the Potential Damage of an Arc Flash?
An arc flash has the potential to cause fires and melt equipment due to its immense heat, but the blast pressure can also cause extensive damage to equipment as well.
Due to these hazards, the potential for human injury is considerable.
Common injuries resulting from an arc flash incident could be burns, auditory damage due to the loud noise, eyesight damage from the bright flash, or even blast damage that can knock a person backwards or cause broken bones.
In many cases, an arc flash injury can be permanent and career-ending, or even fatal.
That is why It is crucial that employers do all they can to mitigate these hazards for their electrical workers safety and their own liability.
Liability & the Importance of Having Arc Flash Safety Policy in Place
In the event of an arc flash, the employer will be held responsible during the investigation.
This is due to Bill C-45 which amended the Canadian Criminal Code, imposing criminal liability on organizations and their representatives for negligence.
Check out this great article if you would like more information on Bill C-45 and how it affects organizations and their electrical workers.
If an organization has not done their due diligence to help prevent the incident, then they could be facing sizable fines.
How to Minimize the Possibility of an Arc Flash?
When an arc flash incident is investigated, regulatory bodies will want to see your Electrical Safety Program (ESP), so it is crucial that yours is kept up to date and is being used properly.
Implementing a well-designed ESP can help reduce the risk of arc flash’s occurring in the workplace by establishing comprehensive safety protocols, effective training, and preventive measures.
While there is no way to eliminate the arc flash hazard, there are several ways to reduce the frequency and severity of an arc flash.
One option would be to have an arc flash study done at your site. This would get arc flash labels on your equipment which states the arc flash incident energy level.
With proper training, workers can read these labels and know what PPE they should wear when testing for dead or performing live work.
If you are interested in learning more about arc flash studies, read Arc Flash Studies: A Guide for Industry Leaders (2023)
There are several other great ways to reduce the risk of arc flashes in your workplace.
Read this article to learn some of our other recommendations.
Conclusion
While the unseen dangers of electricity often bring electrical shock to the forefront of our minds, the catastrophic effects of an arc flash incident should not be taken lightly.
The scary truth is that an arc flash can lead to life-altering injuries, extensive property damage, and substantial financial repercussions.
An arc flash incident isn’t just bad for the bank, but it also causes emotional distress and can be life altering.
That is why it is so important for organizations to recognize their responsibility and take proactive measures to safeguard their workers and facilities.
A well-written and implemented ESP shows an organization's commitment to hazard prevention and employee well-being. By staying informed about the potential causes, consequences, and costs of arc flash incidents, we empower ourselves to make informed decisions that can save lives and livelihoods.
Don’t wait for tragedy to strike!
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