Arc flash isn’t just a safety incident, it’s an organizational failure that will penetrate all facets of operations. No matter what type of facility you are responsible for, arc flash will halt operations, threaten stakeholder’s physical safety, and expose facilities to steep regulatory and financial consequences. One event can trigger:
- Severe employee injury or fatality
- Forced operational shutdowns and costly business intrerruptions
- OSHA investigations and legal liability
- Multi-million-dollar damages
- Increased insurance premiums
- Long-term organizational reputation harm
The reality is most arc flash incidents are entirely preventable with the right compliance-driven safety program.
Direct incident costs tend to grab headlines, but they represent only a fraction of the total cost.
Direct Costs
- Severe workplace injury
- Damage to electrical equipment and facility
- Emergency response and repairs
Indirect Costs
- Business interruption and production downtime
- Expensive retraining
- Missed delivery deadlines and SLA penalties
Regulatory & Liability Costs
- OSHA penalties and investigations
- Civil lawsuits
- Insurance premium increases
Reputation & Workforce Impact
- Decline in morale and productivity
- Skilled labor turnover
- “Headlines” risk
Here’s a realistic example from a mid-size manufacturer:
Cost Category | Impact |
OSHA & Legal Exposure | $350,000+ |
Equipment Replacement & Testing | $420,000 |
Production Downtime (5–10 days) | $650,000–$1.1M |
Total Loss | $1.4M–$1.9M |
Meeting NFPA 70E and OSHA standards isn’t paperwork, it’s protection against human and financial losses.
A compliant safety program includes:
- Arc Flash Hazard Analysis
- Updated One-Line Diagrams
- Proper labeling on energized equipment
- PPE assessment + team training
- Short circuit & coordination studies
- Preventive maintenance on switchgear
Studies must be updated every 5 years or whenever system changes occur.
Failure to comply = increased liability for leadership.
Proactive risk management:
- Reduces arc flash exposure by up to 90%
- Keeps production and patient care online
- Improves safety culture & employee confidence
- Strengthens insurance underwriting profile
Investing in compliance is always far cheaper than recovering from a disaster.
Healthcare Facility Risks
- Always-on critical loads
- Aging infrastructure across wings and expansions
- Power disruptions directly affect patient safety
Industrial & Manufacturing Risks
- Heat, humidity, dust, and vibration accelerate failure
- Long equipment lead times create prolonged shutdowns
- Downtime = lost production and supply-chain delays
Regardless of industry, time is the enemy if electrical safety isn’t actively maintained.
We deliver turnkey electrical safety compliance, including:
- One-Line Diagram updates
- Arc Flash Hazard Analysis
- Infrared Thermography
- Preventive Switchgear Maintenance
- PPE Assessment & Customized Training
We support:
- Hospitals & healthcare systems
- Food processing & industrial manufacturers
- Commercial campuses & critical facilities
Our commitment is simple: Zero incidents. Zero downtime. Zero OSHA investigations.
Get an Arc Flash Readiness Assessment
Every electrical modification, and every day delayed, increases risk.
C&H Electric will evaluate:
- Documentation + labeling accuracy
- System condition + maintenance history
- PPE compliance + worker readiness
- Highest-risk equipment zones