Crashes and the related consequences are far higher, and of greater
financial impact to a company than most organisations realise. It’s not just
the excess (if insured) that is a cost to the organisation for research in the
UK shows these could be 8 to 36 times greater than that initially seen as the
cost.

Some items cannot be covered by insurance and the following is a list of
items you may find you have to cover yourself:

>    Damage
to the company reputation  and possible impact  on  contracts

>    Fines
and costs of legal fees

>    Damage
to products/ plant/ building and equipment

>    Staff
down time for medical appointments/attendance at court etc.

>    Replacement
staff costs and sick pay

>    Loss
of production or production delays

>    Increased
insurance premiums and excess

>    Excess
on a claim

>    Claims
from third parties

>    Accident
investigation and paperwork

>    Repairs
to damaged equipment

>    Alternative
transport for repair duration

>    Inconvenience

>    Re-delivery

>         Management and administrative time.

Considering this sobering data it’s best not to have a crash in the
first place, in fact many  employers have proved that  some simple
measures  ( driver training, effective policies , telematics support 
)  if implemented  will  make one much less likely to be the
victim.

The benefits of managing a “driving for work” policy include:

>        Reduced crash  losses

>    More
effective  fleet utilisation

>    Less
down time

>    Improved
safety culture

>    Improved
public image

>    Higher
staff morale

>    Lower
insurance premiums

>         Lower transport costs

>         Defence against criminal prosecutions and civil litigation

>         Improved business performance

>         Insurance and your business

The provision and cost of commercial motor insurance is based on an
assessment of individual risk. The more likely you are to make a claim, and the
higher its value, the higher your premium will be.

Insurers consider a wide range of factors when assessing the likelihood
of making a claim, including the number, type and value of vehicles to be
insured, the cover required, what the vehicles will be used for, and the
experience and qualifications of the drivers. Many of these risks can be
managed to help reduce costs.

A company’s claims history over the last three to five years will also
be a good indicator of a company’s road safety performance.

Insurers know that generally, organisations with effective risk
management measures in place have the lowest crash rates and in fact many
insurers now recognise that proper driver training should be mandated if they
wish to have insurance cover.

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  costs; not only over  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 vehicle and / or  temporary driver.

MasterDrive have helped many top performing companies to manage this
component of their business by the introducing up to date policies governing
all aspects of their vehicle and driver fleet. Feel free to contact info@masterdrive.co.za for a free
consultation.

Till next time - Drive Safe and remember – your behaviour as a driver is
the easiest thing to change and manage.

Eugene Herbert