What Are the Odds?

June 17, 2011

Provided by Federated Insurance

Do you know the odds of your business having a property loss exceeding $100,000? Or an employee having an auto accident with a company vehicle? Or an employee being injured on the job? How likely is your business to become the victim of a theft? Understanding the odds of these types of losses can help you uncover some risk management opportunities.

Auto Accident Odds
When we look at the risk factors that increase the likelihood of an automobile accident-as compiled by the National Highway Traffic Safety Administration-the top risk factors are:

1. Use of alcohol.
Drivers using alcohol are 4.4 times more likely to have an accident than someone who is sober. Fortunately, alcohol use is rarely a contributing factor in accidents involving company vehicles, particularly when you restrict personal use after hours through the use of a clear vehicle usage policy. Remind drivers to drive defensively to avoid becoming a victim of an impaired driver.

2. Use of cell phones.
Likelihood of involvement in a vehicle collision while talking on a cell phone is 4.3 times higher than when not using a cell phone-almost equal to that of driving while impaired by alcohol! Unfortunately, the use of cell phones while driving is at an all-time high and increasing.
It should come as no surprise that up to 80 percent of all vehicle crashes involve distracted drivers. So, what can you and your employees do to beat the odds?

Control and Eliminate Distractions
Step One -
Recognize that most driving distractions are caused by our own actions-such as choosing to make phone calls while we're driving, eating while on the road, and reviewing paperwork (e.g., delivery orders, schedules, directions, etc.). We need to remember that we all control our own actions.

Step Two -
Be prepared before you head out on the road. A little bit of preparation goes a long way to safely arriving at your destination. Be sure to finish your food and beverage before heading out onto the road, familiarize yourself with all operations controls before driving an unfamiliar vehicle, and review the route before starting out or let a passenger do the navigating.

Step Three -
Avoid these actions while driving. Most situations that cause driving distractions can wait to be dealt with when we are no longer driving.

Finally, as an employer you should develop, communicate, and enforce clearly defined policies that address driving distractions while operating a company vehicle. To help, Federated has created a video titled "Distracted Driving - At What Cost?" and a supporting brochure. These are available through your local Federated representative or on the Federated Internet site. Our goal is to help business owners beat the odds of distracted driving and the consequences of these accidents.

This article provided courtesy of Federated Mutual Insurance Company, your association’s recommended insurer. This publication is intended to provide general recommendations regarding risk prevention. It is not intended to include all steps or processes necessary to adequately protect you, your business or your customers. You should always consult your personal attorney and insurance professional for advice unique to you and your business. ©Copyright 2010 Federated Mutual Insurance Company, All Rights Reserved.

This information is brought to you by the
PHCC Educational Foundation.

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