If you, or a loved one, is a commercial truck accident victim you may be wondering about compensation. The damage caused by a commercial truck is more extensive than a passenger vehicle. This means you may be able to receive a larger settlement if you were involved in an accident.
This article discusses the average cost of commercial truck accidents, what factors impact that cost, and how to engage drivers to decrease safety incidents.
The Average Commercial Truck Accident Cost
According to the Federal Motor Carrier Safety Administration, the annual cost of truck accidents involving health and property damage equates to $334,892. Truck accidents that take place when a semi is pulling multiple trailers (doubles or triples) are estimated at $1.2 million. Lastly, the cost of truck accidents resulting in fatality (involving a semi) is $7.2 million.
What Factors Impact the Cost of a Commercial Vehicle Accident?
Several factors that impact the cost of a commercial truck accident. They can be categorized into direct and indirect costs. Direct costs include things like property damages, health expenses, and business costs. Indirect costs include things like loss of revenue (current and future), HR costs, equipment costs, and legal expenses.
Listed below are direct costs related to a commercial truck accident. Remember that different insurance companies will cover different amounts for many of the listed items.
As for commercial trucks, Federal Law requires trucking companies to carry a minimum of $750,000 in liability insurance. That amount jumps to five million dollars if the truck driver is carrying hazardous materials.
Property & Damages
- Cargo Damage
- Vehicle Damage
- Towing Costs
- Storage of Damaged Vehicle
- Injury Costs
- Medical Bills
- Cost of Insurance Increases
- Immediate Loss of Revenue
- Administrative Costs
Listed below are the indirect costs of a commercial truck accident. Some categories are easily computed while others are more ambiguous.
Ongoing Loss of Revenue
- Loss of Clients or Customers
- Lost Sales
- Meetings Missed
- Salaries Paid to Employees in Accident
- Lost Time at Work
- Cost to Hire or Train Replacement Workers
- Government Agency Costs
- Damaged Equipment Downtime
- Rapid Decline of Equipment Value
- Loss of Personal Property
- Vehicle Replacement
- Accident Reporting
- Fines and Penalties
- Medical Costs
Damage to your Reputation
In addition to increased public relations costs, and with the rise of social media’s influence on spreading negative publicity and poor public relations, a further impact can be made on a company’s goodwill.
For instance, the 2019 airplane crashes (two within 6 months of each other) have become a PR nightmare for Boeing, the world’s largest commercial aircraft manufacturer. The incidents led to a long and costly road to recovery, roughly between $30-$40 billion to re-establish the company’s reputation.
Truck Driver Employee Engagement
It has been discovered that companies that have better employee engagement have fewer safety incidents. The National Health Institute reported that up to 70% of driving distractions can be prevented when the driver is focused on the task at hand.
The top tips for improving employee engagement are:
- Improve Employee Referral
- Improve Driver Mentoring Programs
- Uphold Truck Appearance
- Complete Regular Routine Maintenance
- Encourage Employees to Participate in Wellness Programs
Across multiple industries, companies that have the highest levels of employee engagement report 70% fewer safety incidents.
Commercial Truck Accident Lawyers That Can Help
If you or a loved one are a victim involved in a truck accident and believe you have a truck accident case, the attorneys at Strickland & Kendall, LLC can help. We are available 24/7, 7 days a week. Give our truck accident attorneys a call at (800) 874-3528 for a free consultation today!