How much does a car accident cost a company?
Whether you operate a fleet or just have a few delivery vehicles, the chances of accident are the same. Roughly 20% of any company’s trucks will find themselves in an accident each year. That leaves businesses dealing with the high costs of vehicle repairs and medical bills.
As for the cost, the Occupational Safety and Health Administration (OSHA) conducted a study that found employers paid about $60 billion each year in accidents between property damage, legal expenses, and lost production. So, how much could a car accident cost your company?
The Benefit of Insurance
Your vehicles are, thankfully, covered by insurance. That helps you offset the direct costs of an accident, specifically damages and injuries. Unfortunately, direct costs are just the tip of the iceberg when it comes to the total bill.
You’re likely to spend $3 in indirect costs for every $1 you spend on the direct, which adds up fast. Indirect costs pose entirely new financial challenges to a business, especially given their ability to fluctuate wildly based on the extent of the accident. When the wreck causes a fatality, you’ll need skilled personal injury attorneys to even begin tackling the price tag.
Hidden and Indirect Costs
Revealing the true cost of an accident is challenging. Indirect costs come in a wide variety of forms, with some hidden until trial or afterward. While you can’t foresee all of these expenses, identifying potential ones can help you take proactive measures. Possible hidden costs include:
- Litigation costs
- Legal liabilities
- Worker’s compensation claims
- Administrative burdens
- A spike in insurance premiums
- Productivity losses
- A decrease in employee morale
- Diminished vehicle value
- Poor publicity
- Permanent damage to the image of your brand
Hiring an experienced legal team, like this Denver motor vehicle collision attorney, can help you bring down your costs, but don’t expect a miracle. With the $1 to $3 correlation, you should still expect an enormous loss for your business.
Help Avoiding Accidents
There’s no way to avoid every accident amongst your drivers, but you can be proactive about avoiding these situations and reduce your risk. The first step is to have your employees take a driver safety program.
Most businesses employ this tactic after an accident takes place, but you can use this as a preventative measure by having your drivers undergo a refresher course annually. This also replaces your business’ reliance on motor vehicle reports, which may not reflect accurate records for a matter of months.
The second step is to use technology to your advantage. Telematics and advanced data analytics allow you monitor driving capability in real-time, providing valuable insights while addressing high-risk behaviors.
With these two steps in place, you can better intervene in you drivers’ day to day habits to better prepare them for any hazards they might face on the road. This minimizes your risk, improves employee performance, and helps you weed out any potentially hazardous drivers in the process.