Vehicle accident costs to employers

In an era of “tort reform” and efforts at reducing safety regulations, the National Highway Transportation Safety Administration recently published a report detailing the actual costs of traffic accidents to Motor Carriers and other employers.

Not surprisingly, the report suggests that employers who advocate safety policies end up saving money in the long run. Whether it is an on-the-job injury or a accident on the highway, safety clearly does pay.

Motor carriers are legally responsible for the driving of the fleet, including their own responsibilities for ensuring the drivers are qualified and save and the equipment in safe operating condition. Trucking companies or Motor Carriers also are held accountable for the commercial motor vehicle accidents in which their driver was found at fault.

Cost to employers for unnecessary injuries can add up quickly. A significant cost to employers for employee injuries are health related benefit costs and other medical costs. The largest cost to an employer after a motor vehicle accident is for liability relating to losses by others.

One illustration provided in the NHTSA report is the employer’s cost of alcohol related motor vehicle crashes which they put at $3,124,000,000. Alcohol related motor vehicle accidents pose serious liability risks when 3rd parties are injured by a driver under the influence at the time of the crash.

In 2000 alone, employer health care spending for motor vehicle crashes was almost $8 billion. Additionally, a greater amount well over 8 billion dollars was spent for time off for recovery and disability claims.

Protecting employees also protects the public at large and the community from unnecessary accidents and is just good business.

The report suggests that safety training and ongoing programs save money in the long run and make business sense for forward thinking companies.

The Federal Regulations provide specific safety guidance for trucking companies to help reduce the number of truck crashes that occur throughout the United States. Many trucking companies are actually working to exceed the rules and regulations in an effort to reduce their costs for liability and to injury to employees.

Technology certainly has been a boon to companies looking to implement safety policies for their fleet. Recently, a proposed regulation would require electronic logbooks for commercial truck drivers in an effort to reduce costs and streamline safety compliance. As technology advances, the procedures for safety compliance inspections and reporting become much easier for motor carriers.

Global positioning systems have made great strides in helping reduce cost for trucking companies by the ability to track the vehicles and provide such the savings as the ability to monitor fuel use and speeds.