Fleet Risk Management
The Business Case – DRIVING FOR BETTER BUSINESS
Work-related road accidents are much more expensive than many employers realise. The cost is much more than the garage bill for your vehicle and much less might be covered by insurance than you have assumed.
It has been estimated that the full cost to you the employer might be £8 to £36 for every pound paid on your insurance claim. Some items cannot be covered by insurance and the following is a list of items you may find you have to cover yourself:
- Loss of company reputation and contracts
- Fines and costs of prosecution
- Damage to products/ plant/ building and equipment
- Staff down time for medical appointments/attendance at court etc
- Replacement staff costs and sick pay
- Loss of production or production delays
- Increased insurance premiums and excess
- Excess on a claim
- Offenders’ own legal fees
- Claims from third parties
- Accident investigation and paperwork
- Repairs to damaged equipment
- Alternative transport for repair duration
- Inconvenience
- Re-delivery
- Management and administrative time.
Its best not to have a crash in the first place - and other employers have proved that some simple measures any firm can take will make one much less likely. In 2000 the HSE estimated the costs to employers arising from ‘at-work’ road traffic accidents to be in the region of £2.7 BILLION per annum. The benefits of managing a driving for work policy include:
- Reduced accident losses
- More effective vehicle use
- Less down time
- Improved safety culture
- Improved public image
- Higher staff morale
- Lower insurance premiums
- Lower transport costs
- Defence against criminal prosecutions and civil litigation
- Improved business performance
INSURANCE AND YOUR BUSINESS
The provision and cost of commercial motor insurance is based on an assessment.