In 2017, motor vehicle crashes, both on and off the job, cost employers $56.7 billion. That’s BILLION, with a “B.” Commercial vehicle accidents cost employers in both direct and indirect ways. Direct costs, as you might expect, deal largely with increased insurance premiums and property damage.
Direct costs of vehicle accidents to employers include:
- Workman’s compensation
- Auto insurance and liability claims/settlements
- Group health insurance dependent coverage
- Property damage (equipment, products, etc.)
- Motor vehicle repair and replacement
- Healthcare costs/physical and vocational rehabilitation costs
- Increases in medical insurance premiums
- Life insurance and survivor benefits
- EMS usage (ambulance), vehicle towing and/or impoundment
- Municipality/utility fees for damage to roads, signs or poles
What most organizations don’t consider are the indirect costs associated with accidents. Indirect costs are those costs that are not direct damage expenses, pre-funded loss allocations or losses covered by insurance.
Indirect costs of vehicle accidents to employers include:
- Supervisor’s time (rescheduling calls, making special arrangements)
- Fleet manager’s time and resources to coordinate vehicle repair
- Failure to meet customer requirements resulting in lost revenue
- Damage to organization’s public image
- Employee replacement
- Overtime pay (to cover work of missing employee)
- Re-entry and retraining of injured employee
- Administrative costs (documentation of injuries, treatment, absences, etc.)
- Inspection costs
- Loss of customer loyalty due to negative publicity
More and more commercial fleets are utilizing safety technology and telematics data to improve their driver’s behavior and increase overall safety performance. But many organizations would like to initiate such changes, but lack in the in-house resources, knowledge and expertise to manage programs that build a “safety first” culture. That’s where InSight can help. Read more about the Complete Fleet Safety Program, what it entails and how you can learn more information.