According to the Federal Motor Carrier Safety Administration, the average fleet vehicle accident costs a company $22,000, with injuries, the average rises to $331,000. In the event of a fatality, it can cost $7.2M! These accident-related losses are one of the leading causes of small business failures in the US. What is so frustrating about such statistics is that some or most of these catastrophes are preventable.
We spoke with Mike Ezell, who is a Defense Attorney specializing in claims litigation for trucking firms. He has seen first hand how devastating fleet vehicle accidents can be to these companies. He states, “Firms who implement an operational program that monitors the employee’s driving habits can play a major role in lowering the costs of a lawsuit settlement.” Taking steps to monitor unsafe driving behavior can play a significant role in lowering the costs of any safety incident or prevent the incident from happening in the first place.
The National Safety Council reports that 40% of all motor vehicle accidents are work-related. More than half of these incidents cause employees to miss work, costing employers $57B. (US Dept of Labor) If only one of your fleet vehicles is out of service, it can cost $760 a day in rental, administrative, and repair fees! Other factors that can add to these costs are service disruptions, lost clients, missed sales, negative company reputation, reduced productivity, claims administrative and legal fees.
The good news is that telematics is here to help. Fleet Management use is increasing, with 86% of fleets now using telematics, up from 48% two years ago, leading to a rapid decrease in safety incidents. We can do better. With more and more features available, fleets must work with their solution providers to get the most from their systems.
Discover how FieldLogix can help you improve fleet safety by requesting an invite to our Virtual Tour Center below!