Restoration Insurance: Creating a Driver Safety Program
One of the most costly claims for restoration contractors are auto-related accidents. In fact, according to OHSA, someone dies from a motor vehicle crash every 12 minutes, an injury occurs every 10 seconds and a crash occurs every 5 seconds. Employers bear the costs for these injuries, which is why implementing a driver safety program is of the utmost importance. Not only will a driver safety program keep your employees safe, but it will almost always result in a reduction of auto insurance and workers compensation premiums.
Over the next two blog posts we will review the importance of setting up a driver safety program and the best way to start the process. If you have any questions on setting one up for your restoration company, please don't hesitate to reach out to us.
Set Up a Safe Driving Program to Keep Your Employees Safe on the Road
Motor vehicle crashes are a leading cause of death and injury for all ages. Crashes on and off the job have far-reaching financial and psychological effects on employees, their coworkers and families, and their employers.
A proper driver safety program will:
Save lives and to reduce the risk of life-altering injuries within your restoration company.
Protect your organization's human and financial resources.
Guard against potential company and personal liabilities associated with crashes involving employees driving on company business.
Your program should work to keep the driver and those with whom he/she shares the road safe. If necessary, the program must work to change driver attitudes, improve behavior, and increase skills to build a "be safe" culture. By instructing your employees in basic safe driving practices and then rewarding safety-conscious behavior, you can help your employees and their families avoid tragedy.
Employees are an employer's most valuable assets. Workplace driver safety programs not only make good business sense but also are a good employee relations tool, demonstrating that employers care about their employees.
Promoting Safe Driving Practices Helps Your Bottom Line
Motor vehicle crashes cost employers $60 billion annually in medical care, legal expenses, property damage, and lost productivity. They drive up the cost of benefits such as workers' compensation, Social Security, and private health and disability insurance. In addition, they increase the company overhead involved in administering these programs.
The average crash costs an employer $16,500. When a worker has an on-the-job crash that results in an injury, the cost to their employer is $74,000. Costs can exceed $500,000 when a fatality is involved. Off-the-job crashes are costly to employers as well.
The real tragedy is that these crashes are largely preventable. Recognizing the opportunity that employers have to save lives, a growing number of employers have established traffic safety programs in their companies. No organization can afford to ignore a major problem that has such a serious impact on both their personnel and the company budget.
Calculate Your Costs for Motor Vehicle Crashes
When you look at the outlined costs of an accident above, it is easy to see that the costs implementing a driver safety program are minimal compared to the costs of crashes to your organization. Examples abound of the positive return-on-investment (ROI) realized by companies – small, medium, and large – that have implemented well-designed safety programs for the benefit of their employees. In fact, the Liberty Mutual Insurance Company reported in 2001 that, based on its Executive Survey of Workplace Safety, 61 percent of surveyed business executives believe their companies receive an ROI of $3.00 or more for every $1.00 they spent on improving workplace safety.