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Companies that rely on vehicle fleets have unique costs associated with doing business. Mobile assets require significant capital investment. In addition, fuel and maintenance costs can take up a significant portion of a business's profit margin. However, there are additional hidden costs that many fleet managers overlook in the course of doing business. Lack of proper safety measures for vehicle fleets can incur significant out-of-pocket expenses, increase liability and put lives in jeopardy. Many companies find that installing GPS vehicle tracking on their fleet vehicles provides one sure way to improve safety. GPS tracking offers a wide variety of features and benefits that businesses with vehicle fleets can utilise to significantly improve their safety records and protect their business from undue costs. The Focus on Safety By improving the safety of drivers and vehicles, businesses can significantly reduce payouts for accidents and violations. Many business owners do not realise that the true cost of an accident is 2 to 10 times more than the direct cost of the accident. The total cost of vehicle accidents include a variety of factors including: Lost time by employees at the scene of the accident Lost revenue because equipment is not producing income Failure to fill orders or meet deadlines Lost time by rescheduling missed jobs Lost time on accident investigations and reports by management Possible increased insurance premiums Public relations damage You may also be faced with the costs of replacing an injured driver. Costs include advertising the position, time spent in the application process, driver performance tests, drug screening, background checks, orientation, training and much more. In addition, you will temporarily lose productivity as a new driver will not be as fast and efficient as a veteran driver. And even veteran drivers that do return to work after an accident injury will most likely not be at 100 percent right away. Injured drivers can also lead to increased workers compensation claims and law suits. Losing claims can lead to significant settlement costs, as well as attorney fees and time spent defending the business. Improving safety also limits your liability to claims from the public at large. Improper safety can obligate your business to pay damages to people injured in an accident and property damages. Settlement costs for hospitalisation, pain and suffering and other injuries can quickly spiral out of control and ruin your business. By focusing on safety, your business can decrease insurance costs. An outstanding safety record can lower your risk to insurance providers which may result in lower premiums. In addition, many insurance companies offer rate reductions for additional safety equipment including GPS tracking devices. A poor safety record may serve as a red flag to clients. Improper safety can result in interrupted service to clients and prompt them to search for other vendors. If your business has a great safety record it can help you keep client contracts and increase renewals.
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