Insurance companies, it is estimated, are paying out around £8 billion a year in road crash-related claims with businesses picking up the bill in relation to the around 200 road deaths and serious injuries a week resulting from incidents involving at-work drivers.
But companies that have introduced RiskMaster, Fleet Support Group’s comprehensive occupational road risk management solution, have seen the number of crashes involving at-work drivers slashed and, as a result, huge cost savings have accrued.
Employment law specialist Kevin Basnett, Senior Partner at Goughs Solicitors and an adviser to FSG, said: “Occupational road risk has been a hugely unmanaged area. But a well managed business manages safety well and can save a lot of money and do a lot of good for the company.
“Occupational road risk management provides companies of all sizes and in all sectors with a win-win situation and will also deliver corporate social responsibility, which keep shareholders and the public happy.”
One such business is property services company eps plc, which has cut its insurance claims in half in 18 months thus saving thousands of pounds.
Kent-based eps operates a 300-strong fleet of mainly light commercial vehicles and works across three sectors - social housing, building services and security.
The company insures for third party claims only, which means that own-fault incidents directly impact on the company thereby wiping profit off its bottom line.
Data recorded by RiskMaster reveals that in the first six months of 2007 the company incurred 83 claims. However, in the second half of last year the figure dropped to 63 claims and in the first six months of 2008 a total of 44 claims were recorded.
The figures highlight that there has been a 50% reduction in the number of at-fault incidents involving a third party vehicle and further major reductions in so-called ‘non-recovery’ claims - scrapes, hit while parked, vandalism etc. - and non-fault accidents.
eps Fleet Purchasing Manager Bruce Tee said: “Cost control is vital to all businesses and we have taken action to reduce our vehicle claims and, as a result, are making financial savings.”
In addition to providing RiskMaster, FSG undertakes accident management and uninsured loss recovery on behalf of the company.
FSG Chairman Geoffrey Bray said: “No matter how a company insures, crashes cost money. In addition, the intangible costs of incidents must be factored in, whether that relates to administration or delays in delivering goods, carrying out work or forcing a meeting to be postponed.
“eps has been able to eliminate significant costs because it has focused on taking action in a crucial area. Not only is cash being saved but the company is complying with all areas of legislation applying to at-work drivers.”
He added: “It is clear that, by effectively using available data, eps is seeing a reduction in accidents. As a result the number of insurance claims is falling and insurance premiums should also fall. However, because the company insures third party it will also save itself a significant amount of money in funding the cost of own-fault accidents.
“eps is showing strong fleet management and when the UK is in the grip of recession it is even more imperative that areas of cost are identified and savings made.”