Worker injuries are indisputably one of the greatest concerns businesses face, and in the trucking industry accidents can be all too common. Between workers loading cargo on and off of vehicles to drivers encountering hazards on the road, the trucking industry is a hotbed for worker’s compensation claims. Beyond the costs of medical bills and lost wage compensation, work related accidents and injuries can have a deep-rooted financial impact on a business. So, how can business owners estimate the cost of a workplace injury?
Estimating the cost of injuries can be challenging as measuring many of the key components can only be does retrospectively. The National Safety Council (NSC) regularly estimates of the average costs of fatal and nonfatal workplace injuries by calculating a business’s total financial expenditures relating to the accident by examining four primary types of calculable expenditures. These costs include medical expenses, wage and productivity losses, administrative expenses, and employer’s uninsured expenses.
- Medical expenses incurred through a workplace accident are arguably the most commonly recognized expense associated with a workplace injury. Businesses generally know that if a worker is injured on the job, the employer will likely be held responsible for covering an employee’s physician fees, hospital and emergency services charges, the cost of medicines, future medical expenses such as physical therapy and ongoing treatment.
- Wage and productivity losses are two of the most complex workplace injury expenses. Employers are often held accountable for compensating an injured worker for lost wages which depending on the length of time necessary to recuperate, can be extremely costly. In some cases employers can also be held liable for future losses should a worker’s injuries have lasting repercussions.
- Administrative expenses such as the costs of public and private insurance, claims pay-outs, settlements, any legal fees and regulatory fees or fines imposed upon a business. These expenses are often money directly out of a business’s pocket and can deeply affect an operation’s bottom line.
- Uninsured costs are expenditures not recoverable through a business’s worker’s compensation coverage. This is a broad range of business expenses which often includes lost time, production slowdowns or shutdowns, costs of training replacement workers, extra cost of overtime for uninjured workers and other similar expenses which are secondary to the accident itself.
It is also important to note the importance of one undeterminable variable, the soft costs associated with an accident, which makes calculating the full, comprehensive total cost of a workplace accident nearly impossible.
At Tri-State Insurance Agency we understand the risks the New Jersey trucking industry faces, especially when dealing with accidents and injuries. That’s why we specialize in crafting comprehensive business insurance solutions that are designed to protect our clients’ unique needs. Our NJ worker’s compensation coverage can help ensure that you and your employees are fully protected in the event of an accident. Give our New Jersey trucking insurance specialists a call today at (888) 990-0526 to learn more about all our offerings.