According to the OSHA, a vehicle crashes every 5 seconds and many of these accidents occur during the work day. People who are driving as a part of their work responsibilities make up a considerable bulk of road users, and they’re often fatigued, stressed, or under time pressure. It’s important for all businesses to consider the impact of employee driving habits, not just from a safety perspective but from a financial standpoint too. To find out how to reduce penalties and keep staff safe on the roads, keep reading.
The Perils Of Poor Employee Driving Habits
Injury Claim Coach states that every year, US employers pay out approximately $25 billion in work-related company vehicle collisions. In most countries, it is the businesses that are responsible for any driving penalties, violations, or collisions involving cars that their employees were driving, not the employees themselves.
This presents a difficult situation for both employees and employers: the former is often stressed out and pressed for time, making them vulnerable to irresponsible road habits that could endanger both themselves and others around them. However, it also means the latter (employers) are then at risk for a massive insurance payout should an everyday delivery go awry.
Cost Implications Of Driving Penalties On Your Business
It’s no secret – the US annually spends billions on compensation for driving penalties and violations. Some of the most common driving penalties are speeding over the limit, running through a red light or stop sign, and not signaling. All of these penalties cost anywhere between $150 to $500 per incident.
But it is not just the cost implications of paying a penalty that businesses have to consider. There is comprehensive data available that suggests fuel consumption can increase by 15% when employees are driving on company time, and a vast number of employees admit to speeding over the limit due to work-related pressures.
Experts at Insurance Navy state that obtaining SR22 insurance is one way for companies to avoid these heavy costs. Different from regular auto insurance policies, SR22 is an official document that states that you’ve bought the minimum liability insurance necessary for your state. Despite being a hassle to obtain, SR22 documents can become incredibly useful to businesses whose employees do a lot of driving.
You might want to consider obtaining SR22 insurance if your employees have been convicted of multiple DUIs, caused accidents without insurance, or received multiple speeding fines over a short period of time. The document allows you to retain driving privileges despite serious or repeated penalties.
Why Your Employees Should Be Driving Company Vehicles
Contrary to popular belief, The Horton Group confirms that it is actually more affordable for businesses to have employees drive company vehicles as opposed to their own. If employees drive their own vehicles for work purposes, their employer becomes responsible for financial liability in the event of a traffic violation or collision.
However, if they are driving a company-owned car, that liability becomes the responsibility of the driver themselves. Employee-owned vehicles being driven on behalf of your business poses a threat to your organization’s legal reputation – but with access to the right documents and insurance policies, significant payouts can be avoided.