Determining the cost of a truck accident and how it may impact your business is essential. Even a minor crash can be financially detrimental. When determining how much an accident costs, it’s important to remember that the cost varies from incident to incident. It’s very hard to determine or predict the exact amount, but a number of factors can affect it. Here we will discuss the direct and indirect costs of a truck accident and how it can affect your reputation.
What’s the Average Cost of a Truck Accident?
According to a recent article, the estimated cost of a truck accident involving one injured party is around $148,279. If a fatality occurs, the cost can go upwards to 7 million. In many cases, this number multiplies if several injuries or fatalities occur.
Let’s break it down by direct and indirect costs that your business may suffer from as a result of an accident.
Direct Costs of a Truck Accident
Property and Damages
- Cargo damage
- Towing costs
- Vehicle damage
- The storage of damaged vehicle
- Injury costs
- Increase in insurance premiums
- Medical costs
- Administrative costs
- Immediate loss of profits
Indirect Costs of a Truck Accident
Ongoing Loss of Profit
- Loss of clients or potential customers
- Meetings missed
- Lost sales
Workforce Related Costs
- Salaries paid to workers in accident
- Cost of hiring or training new workers
- Lost time at the workplace
- Government agency cost
- Damaged tools
- Loss of property
- Accelerated depreciation of tools
- Vehicle replacement
- Fines, charges, and penalties
- Accident reporting
- Medical costs
Damage to Company’s Reputation
In addition to the costs mentioned above, an accident can have a significant impact on your company’s reputation. With the increased use of social media platforms, it’s easier to spread negative publicity, which can soil a company’s good name. As a result, it can cost millions to build your reputation back up.
How Much Profit is Lost in a Truck Accident?
Hidden costs can be five to ten times greater than the visible costs. Businesses must take into consideration the impact of indirect costs. To recover from the loss, it would take a significant amount of revenue to cover the lost profits.
All in all, truck accidents are expensive since they directly impact operations, the workforce, and profit margins. Thus, it’s important to be aware of the visible and hidden costs involved with a truck accident.
This is where proper and quality insurance can come into play. Although it may not cover all the costs, it can help relieve some of the financial burden from the accident.