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4.4.3 How Crashes Affect Carriers

Promoting safe driving practices not only helps carriers operate in compliance, but it also affects their bottom line. In addition to the tragic human impact of crashes, carriers should understand the related financial impacts.

Direct Costs 

Indirect Costs 

  • Cargo damage
  • Vehicle damage
  • Lost clients/customers/sales
  • Salaries paid to employees involved in crash while recovering
  • Medical Costs
  • Loss of revenue
  • Administrative costs
  • Police report
  • Possible effect on cost of insurance
  • Possible effect on cost of Workmen's Compensation Insurance
  • Towing costs 
  • Storage of damaged vehicle 
  • Lost time at work 
  • Cost to hire/train replacement employees 
  • Supervisor's time 
  • Loss of personal property 
  • Replacement vehicle rental 
  • Damaged equipment downtime 
  • Accelerated depreciation of equipment 
  • Accident reporting 
  • Medical costs paid by company 
  • Poor public relations/publicity 
  • Increased public relations costs 
  • Government agency costs

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