The real cost of Commercial Auto accidents is much more than the claim paid. A vehicle accident at work can have a devastating economic effect on businesses – the loss of a crucial vehicle, the disruption to operations, loss of business, and the potential for a costly lawsuit.
On average, a non-fatal injury crash can cost the employer $100,310, and motor vehicle accidents overall cost an average of $85,311.
Safer driving means safer workers, less disruption, and a healthier bottom line. Fewer accidents and losses can help reduce insurance costs,
If you have a DOT registration, the information collected is available to the public and insurance carriers. No longer do insurance companies make underwriting decisions based on loss runs, but they review MVR's, CAB, and SAFER reports showing the types of violations and whether vehicles are taken out of service which dramatically affect a company's safety score.
Social Inflation which is caused by several factors including attorney involvement in over 30% of all auto claims, and jury awards have caused commercial truck insurance losses to increase substantially, causing premiums to increase, and some cases prevent companies from obtaining insurance and putting them out of business. Insurance companies are beginning to avoid companies that do not take maintenance, hiring, and safety seriously.
There are several tools that can increase safety and accountability by adopting telematics and resources to make the right hires, hold them accountable, and change the overall company culture like identifying maintenance issues daily and reporting to service or management for action.