The Business Case
Work-related road accident costs come straight off the organisation's bottom line, reducing its profits or surplus.
For most organisations, investing in preventing at-work crashes and casualties will almost always more than pay for itself by reducing the organisation's costs and improving its efficiency and effectiveness.
The true costs of road crashes to organisations are nearly always significantly higher than the resulting insurance claims.
While organisations may be able to recover vehicle damage costs through insurance, many other costs are not recoverable, including lost time in wages and salaries; lost orders and output; administrative costs, legal fees; and costs due to other kinds of business interruption.
Many of the resources required to manage work related road risks should already be available as part of the organisation's normal occupational health and safety management. While some extra costs may be incurred, (for example, training managers and drivers, setting policies and implementing new standards, higher specification vehicles and their maintenance, or adjusting route specifications and work schedules for safety purposes), these will be offset by benefits such as reduced accident losses, less lost staff time, lower insurance premiums and improvement in business efficiency generally, as well as better staff morale and 'company image'.
Costs of Not Managing Occupational Road Risk
- Lost staff time and expertise
- Temporary or permanent staff replacement
- Third party injury costs
- Welfare and medical costs
- Personal injury compensation
- Staff counselling, re-assessment and training
- Vehicle damage, repair and replacement
- Vehicle downtime
- Increased vehicle wear and tear
- Damaged or destroyed stock
- Lost productivity
- Inefficient staff and vehicle use
- Management and administration time
- Accident/incident investigation
- Legal fees
- Fines and court costs
- Litigation and compensation
- Increased insurance premiums or excess
- Missed/delayed delivery of goods or services to customers
- Loss of customers
- Damage to reputation and image
Investment Costs in Managing Occupational Road Risk
- Management time and training
- Management systems and technology
- Risk assessment
- Driver assessment and training
- Vehicle technology
- Data monitoring and reporting
- Accident/incident investigation
- Control measures
Benefits of Managing Occupational Road Risk
- Fewer accidents and lower accident costs
- Less lost staff time and turnover
- Improved staff morale
- Increased productivity
- Improved reputation with customers, suppliers and partners
- Better public image
- Lower risk of legal action and costs
- Lower insurance premiums
- Improved safety culture
- More effective vehicle use
- More efficient staff and vehicle use
- Improved fuel efficiency
- Improved 'off the job' road safety
The manner in which a company's staff use the road can significantly enhance or harm the company's public image and reputation. The way staff drive or ride on the road is a reflection of the company's image, and highly visible to members of the public, many of who may be customers of the company. Road crashes involving company vehicles, especially liveried ones, are also very visible, especially when pictures or company names are reported in the media. Court cases following crashes or prosecutions for driving offences are also reported in the local and national media.
Companies which are proud of their road safety performance should include details of their management approach, targets and performance in health and safety reports on their websites. To view examples of company health and safety performance web pages visit www.gopop.org.uk.
Business Case for Managing Risk at Work (2014)
Luana Bidasca and Ellen Townsend, ETSC
This report gives an overview of the business case for employers to invest in a Work-Related Road Risk Management programme. It finds that the financial and other benefits of such a programme could outweigh the costs of implementation, and details other benefits, such as increasing efficiency in organisational management and administration.
Making the Business Case (2008)
Dr Will Murray for Driving for Better Business
A report that outlines the business case for managing work-related road safety to help managers who are seeking board authorisation to implement a fleet safety policy. It focuses on why fleet safety is important