The Total Cost of Risk (and Total Cost of Ownership) are the main reason why most organisations choose to manage work-related road risks.
The Total Cost of Risk refers to ALL costs – direct, indirect and hidden/uninsured – associated with collisions. The International Loss Control Institute estimate that for every €1 paid out in insurance there are €8-53 in uninsured losses, depending on the severity of the incident. Even if you use a conservative estimate of 2x the claims cost, the financial impact on the business is still significant.
So, what are these hidden/uninsured losses? The exact nature will depend on the nature of your business but will include absenteeism and administration costs, and could include brand damage, reduced customer service, late deliveries, missed SLAs, etc.
We can work with you to help you understand the Total Cost of Risk and to put this into perspective, based on your main product or service, to ensure that everyone in the organisation – from a driver through to your CEO – understands the implications of road collisions on the financial performance of the business and thus the importance of managing work-related road risks effectively.
Managing the Total Cost of Risk