According to the Federal Motor Carrier Safety Administration (FMCSA), the average commercial vehicle crash that resulted in property damage cost $18,000. Collisions resulting in injuries cost an average of $331,000. Neither of these figures include costs such as damage to business reputation, time out of service, or legal fees.
And due to recent increases in labor and materials costs, accident management costs are only increasing. A serious collision could sink a small business. That’s why it’s critical to understand what you should do after a collision— to minimize the impact to your business. A collision procedures plan can help protect your business despite the risks you can’t control. You need to be able to identify risks and take action that saves lives and money. But when accidents do happen, a video safety solution helps you manage them, keeping your business and reputation intact.
So, today we are going to take a holistic look at what happens after you or one of your truck drivers gets into a wreck. We are going to go step-by-step with a comprehensive guide on what you need to know.
Swap Information
A truck driver should immediately find a safe place to pull over in the event of an incident. If there are injuries, major vehicle damage, or a toxic spill, call 911. If the collision is minor, your truck driver should exchange insurance and contact information with the other party.
Complete contact information, and an accurate description of the time, date, and circumstances of the collision will help expedite investigations and may help your insurance company minimize claims costs. Do not discuss further incident details with the other party at the scene. Provide a contact information form for drivers to keep in their vehicles.
Call and Notify
The driver should alert the office that an accident occurred. A supervisor should advise the driver on what to do next and follow the company’s collision procedures plan. It’s also a good time to collect details about the incident from the driver, while the memory is still fresh.
Next, you want to call your insurance company to begin the investigation and claims process. The insurance company will decide whether to send investigators and/or adjusters to the scene. They may also interview your driver and/or manager to further assess risk.
Notifying your insurance company and submitting accurate collision data quickly may help your insurance company minimize costs. Insurers can expedite claims when they receive the information they need within 24 hours. Reporting accurate data as soon as possible to your insurance company can help reduce claims costs, often by as much as 50%.
Go to the Scene
You will now need to decide if additional personnel should be sent to the accident scene. In the case of a minor collision, you or another supervisor may go to the scene to take photos and interface with law enforcement.
First, find out if the truck driver has already spoken to law enforcement. Introduce yourself to law enforcement, find out what they already know, and what investigation they have started so you can tailor your investigation accordingly.
Locate witnesses, if they have not already been sequestered by law enforcement, so you can get their contact information if the driver hasn’t already. Begin looking for evidence at the scene to document the collision. You need all the information you can get.
Make sure to create an accident procedures checklist so it’s easy to remember what to do when your company’s safety representative is on the scene. When taking photographs, look for skid marks, traffic signals, traffic signs, road conditions, debris, or objects in the road, and the vehicle point of rest after impact.
Deal with the Disruption
The service vehicle is now out of service at least temporarily. A customer service or account manager should notify any affected customers of the delays, and if there is any damage to their goods. Determine an alternate vehicle for providing the scheduled service or delivery. Your company also needs to create a plan to manage any future services or deliveries scheduled for the vehicle in the collision.
Comply with Department of Transportation (DOT) testing. Your company must follow any applicable regulatory requirements for drug and alcohol testing of the driver. Information about required DOT testing can be obtained from their website. (www.transportation.gov/odapc)
Respond to law enforcement investigation. Police may investigate at the scene, including questioning your driver, the other party, and witnesses. You should advise your driver on your policy for interacting with law enforcement. Instructions could include answering only the questions asked and refraining from volunteering further information.
Always remember, a video safety solution can serve as your unbiased witness. Police reports typically rely on driver and witness accounts, and sometimes those accounts conflict. A video recording can expedite the investigation, corroborate your driver’s story, and help you amend any errors in the law enforcement report if needed.
Engage toxic cleanup services, if applicable. If the crash caused a hazardous material spill, cleanup must begin immediately, requested by your company or law enforcement. Associated costs may be your company’s responsibility regardless of who contacted the spill cleanup company.
Handling Media Exposure
Collisions involving company vehicles can attract attention. Reporters may arrive at the scene with television crews to interview your driver, the third party, witnesses, law enforcement, and cleanup crews. Ensure your driver knows to refer the reporter to a designated company spokesperson. Be prepared to identify a spokesperson who can deliver the right message to the media and help protect your business’ reputation.
Find crisis communication plan resources at small business organizations like SCORE and Ready.gov. Coordinate insurance company requests and assign an employee responsible for responding to insurance company paperwork and records requests. Depending on the severity of the accident, a second insurance company may be involved. Gather documentation to protect your business from greater liability, preserve evidence such as vehicle data and video footage of the collision. Gather all relevant driver safety records, which may include, but are not limited to:
- Truck Driver Qualification Files (DQ)
- Hours of Service
- Maintenance Records
- Training Documentation
Depending on the scope of the accident investigation, vehicle damage, and litigation, a vehicle may be taken out of service for years for repairs and investigation. If the vehicle is not paid off, the business must continue making payments on the vehicle while it’s out of service.
If your driver did everything right when faced with an unavoidable collision, this is a great opportunity for positive recognition. Consider rewarding your driver with an incentive or company-wide recognition.
If, on the other hand, the driver was at fault, consider whether corrective action needs to be taken. Be mindful of your company’s safety and discipline policies when taking action and consider seeking legal counsel for guidance. Appropriate safety and discipline policies can help demonstrate your company’s commitment to safety.
Audits and Expenses
Either way it goes, get prepared for a premium hike Following an incident, insurance rates may increase, or your insurance provider may drop your company altogether. Comply with FMCSA audit, if applicable.
The FMCSA may conduct an audit to determine if your company has violated safety regulations. Penalties assigned by the FMCSA could include fees, temporarily halting company operations, or even shutting down the business entirely. These findings will impact your Compliance, Safety and Accountability (CSA) score, which may negatively impact your ability to attract and service customers.
You will also need to manage medical, property, and liability claims. If workers’ compensation claims are filed by your driver, the claims must be processed, investigated, and potentially paid. You may need to recruit another driver to replace your current truck driver if he or she is injured or terminated. Claims and injuries can cost your company valuable resources.
Even more, you need to be prepared to defend against third-party claims. In many states third parties have up to three years or more to make claims. This varies depending upon the state. Be sure to retain all relevant records through the duration of this period.
And, of course, with defending against third parties also comes being prepared to fight a lawsuit. A collision brings the risk of a lawsuit—piling up attorneys’ fees, financial fees, reputation loss, and downtime. In addition, a lawsuit may bring negative media attention, and take time away from actually running your business.
Knowing your business’ risks is the first step in managing them. By knowing your risks, you can proactively create a risk mitigation strategy and an accident procedures plan to protect your business. That’s why you can’t afford to not take post-accident steps seriously. How you handle it could mean the life or death of your trucking company.