How To Effectively Manage Your Total Cost Of Risk

Andy Price, Practice Leader of Motor Fleet at Zurich Insurance, gets to grips with the real cost of fleet risk, identifying a system and philosophy that will help to meet that risk and reduce your costs.

The International Loss Control Institute (ILCI) say that for every £1 paid out by an insurer there are £8-£53 in uninsured losses, depending on the severity of the incident. This means that whilst most people focus on the cost of the premium and any excess / deductibles, the far bigger financial implications are the hidden costs associated with every crash. But what are these uninsured losses / hidden costs?

The biggest hidden cost is absenteeism, and the knock-on effect of this. If someone is absent from work, even for a short period of time, they are not doing what you pay them to do, and this will have a cost associated with it to the business as a whole.

There are, of course, lots of other uninsured losses and hidden costs, depending on the nature of your business. These could include lost productivity, late deliveries, brand damage and loss of reputation, legal costs, agency fees, administration time – the list goes on and on.

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