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All things fleet tracking – industry news and best practices

How Much Can an Accident Really Cost Your Business?

Posted on 05/20/2013 by Adrienne Sallerson  |  0 Comments

According to the Bureau of Labor Statistics (BLS), motor vehicle crash injuries on and off the job were estimated to cost employers nearly $60 billion annually between 1998 and 2000. Additionally, the BLS reports that on average, a fatality occurring on the job costs a business over $500,000 in direct and liability costs, with each nonfatal injury costing nearly $74,000. But that’s only the beginning. Think about the costs associated with lost productivity, vehicle downtime, missed appointments and a damaged reputation. When you factor in each of these costs, how much is your business really losing?

  • Lost Productivity: Anyone that’s been involved in a vehicle crash knows that it’s rarely just a stop and go process. Assessing the damage, collecting insurance information and filing a police report takes time. That’s time that your employee should have spent working on a job.
  • Vehicle Downtime:  It’s important to take into consideration the amount of damage done to the vehicle. Is the damage mild or severe? Is it even drivable? Think about how long your vehicle could be in the shop and off the road.
  • Missed Appointments: A vehicle crash not only means lost productivity, but unhappy customers. You could be dealing with customer complaints about late or missed appointments. Unhappy customers don’t usually give repeat business.
  • Damaged Reputation: Do your employees drive company vehicles with your brand stamped on the side? If so, your vehicles are a moving advertisement for your company. Those who witness your employees practicing poor driver behavior aren’t going to have a positive impression of your business.

As you can see, an at-fault vehicle crash can really drain your budget and damage the reputation of your business. So, what can you do to minimize the risk of a vehicle crash? With a GPS fleet tracking solution, you’re able to monitor driver behavior, giving you the ability to pinpoint which drivers are being safe and which could cause your next fleet’s vehicle crash. This allows you to take immediate action with those drivers that are practicing poor driver behavior and provide them with counseling and training on the importance of driver safety. Ultimately, knowing how your drivers behave on the roadways allows you to prevent accidents before they happen, protecting your drivers, vehicles and business.


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