The Cost of Crashes
Traffic crashes are the leading cause of death in the workplace and a leading cause of work-related disabilities (Bureau of Labor Statistics, 2001). There is evidence that many motorists do not wear safety belts on the job and recent research findings indicate that belt use among those driving for work may be lower than among other vehicle operators.
Assessing Your Risk
Your risk depends on how much driving your employees do. Fortunately, most traffic crashes do not result in a fatality or a serious injury but even small mishaps cost money. The average crash costs an employer $16,500*. Use the NETS Cost Calculator tool to see how your bottom line could be affected. The more miles driven by your employees, the higher the typical costs of crashes through lost productivity, workers compensation costs, medical expenses, repair bills, replacement transportation, substitute labor and higher insurance premiums. And these costs reflect only a portion of your potential costs. Traffic crashes that occur off the job cost employers, too.
It's a simple equation: Every mile driven = $0.16 cents
* Based on an analysis by NHTSA, 2003
Costs Covered by Employers
Employer costs resulting from motor vehicle crashes fall into three categories:
- Health fringe benefit costs are the costs of fringe benefits paid because of illness and injury of employees and their dependents.
- Non-fringe costs include motor vehicle property damage and liability insurance, crash-related legal expenses, and the costs of unreimbursed vehicle damage and replacement. In addition, employers pay taxes to help fund police, fire, and ambulance services.
- Wage premiums are paid to workers for accepting risky jobs. Individual workers and their families bear the pain and suffering and quality-of-life losses associated with workplace injury. Wage premiums for risk-taking can be viewed as payments in advance for possible future losses caused by injury.
