Costs and Benefits

Few organisations know what road accidents are costing them. In 2010, the economic welfare cost of reported road accidents was estimated to be around £15 billion. (1)

The true costs of road accidents to organisations are nearly always significantly higher than the resulting insurance claims. Looking at the costs of workplace accidents generally, the HSE suggests that uninsured losses are ten times the cost of insurance premiums paid. (2)

Many costs (such as lost time in wages and salaries; lost orders and output; administrative costs, legal fees; and costs due to other kinds of business interruption) may not be recoverable. Road accidents can also have a negative impact on staff morale and can damage the organisation’s image in the outside world (for example, when liveried vehicles are involved).

Costs Benefits
  • Management time
  • Reduced accident losses
  • Management training
  • Less lost staff time
  • Risk assessment
  • Improved staff morale
  • Driver assessment
  • Better public image
  • Driver training
  • Lower insurance premiums
  • Accident/incident investigation
  • Improved ‘off the job’ road safety
  • Data collection/analysis
  • Improved safety culture
  • Control measures
  • More effective vehicle use

Major improvements in fleet safety performance can be achieved by companies simply investing in ‘defensive’ and ‘advanced’ driver training for their staff. In addition to the individual benefits of enhanced safety, organisations will see a reduction in their overall fleet fuel costs, vehicle incident rates, down time, insurance premiums and general maintenance costs.

Reference:

  1. Department for Transport - Reported Road Casualties in Great Britain: 2010 Annual Report
  2. HSE Better Business Website: Cost Savings of Health and Safety