Tti Tracking Technology Blog The True Costs to Your Business from driver accidents

How Claims Really Affect Your Business! The Claims Iceberg  When your company has a crash (and you will have one sooner than later), it is important to understand the true costs associated to these incidents as it is not just your deductible.Most companies don’t think about the unanticipated costs or the ‘unknown’ costs as it is difficult to forecast what that true amount might be.​Icebergs are a good representation of associated costs per crash as typically you only see 10% of the iceberg itself and 90% below the surface. The above diagram outlines the true costs above the water line and the ‘unknowns’ below the water line. Above the water line​Average cost of a deductible ($10,000)Injury payout ($30,000)False Claims payout ($5,000 to $15,000)​Below the water line there is much more. Here are some Potential Costs:​Cost for supervisor and or company to investigate the claim ($500 to $5,000)Expert costs ($10,000), Investigative hours ($5,000 - $20,000)Court Costs, i.e. lawyers, witnesses, downtime of driver ($10,000)WorkSafe Claim ($5,000 - $10,000),Fines from Police ($500 - $5,000),Fines from WorkSafeBC (0$ - $100,000).​These costs can be extreme setbacks on companies. This is NOT where it ends though. There are the intangibles as well.​You may also have to reimburse your clients for the loss of product. There is also loss of trust and confidence with your client which can result in a:​Loss of clientsLoss of reputationLoss of potential clients due to the loss of reputation​More importantly though, the highest potential costs stem from injuries or loss of life:LAWSUITS: these can have a severe impact on your company’s finances and could potentially bankrupt your company. If your driver is found at fault (negligence, not paying attention, or is driving under the influence) during their crash, your company will be paying for damages. Add injuries to the claim and your company is mired in legal costs and will have to spend years battling in court or payout on a settlement. Regardless of the route taken, both can reach hundreds of thousands to millions of dollars.​Other potential costs to take into account:​Sick leave pay to affected driversCosts to hire and train new drivers.WorkSafeBC premium increaseInsurance rate increase​Compounding these costs are the additional cost associated to the driver:​Permanent physical trauma or an acquired brain injuryOut of work for a period of timeDepression/stressPost Traumatic Stress DisorderQuality of life for them and their family​​​Safety, Security & Savings​​​​​​​​​​​​​​​