Costs and Benefits
For organisations that need to be convinced that taking action to prevent work related vehicle accidents is likely to be cost effective, the true costs of road accidents to organisations are nearly always significantly higher than the resulting insurance claims. Unless adequate accident data collection and costing systems are in place, organisations will not know what their road accidents are costing them, and estimates are very likely to be over optimistic. More importantly, accidents impose unquantifiable human costs on their victims, families, colleagues and friends.
Many of the resources required to put a Fleet Safety Management System in place should already be available to your organisation, enabling you to meet normal safety, health and staff wellbeing obligations. While some additional costs may be incurred, these are likely to be offset by the benefits.
Improving fleet safety management will directly contribute financially and operationally to both your organisation and to the wider population in areas in which you operate to reduce human suffering and hardship.
It is worth amplifying the value of an effective Fleet Safety Management System, which can be realised through adopting the systems, controls and procedures that are described in this guide. While resources will be required to improve fleet safety, the benefits are often significant. Work-related road accidents are much more expensive than many organisations realise. The cost comprises more than the repair bill for the vehicle and often less might be covered by insurance than assumed. It has been estimated that the full cost to the employer might actually be $15 to $75 for every dollar recovered through an insurance claim. In addition, some items cannot be covered by insurance.
It’s best not to have a crash in the first place - and other organisations have proved that some simple measures anyone can take, like those described in this guide, will make one much less likely. Insurers know that generally, organisations with effective risk management measures in place have the lowest incident rates. Consequently, if you are able to demonstrate a proactive and effective attitude to risk management you are very much better placed to exercise control over your costs – not only over your insurance costs, but also the hidden costs of road crashes such as having a damaged vehicle off the road, and the cost of hiring a temporary driver.
Despite the strength of evidence in support of the business case for fleet safety risk management, an organisation may still find that short-term operating pressures can cause staff to ‘cut corners’ on road safety – even though it acknowledges that the results of road accidents could be disastrous for its operations. Hence the need for a Fleet Safety Management System that is understood and complied with by all members of staff involved in driving related activities.
