Moreover, as accident losses increase, so will a company’s insurance premiums. Costs and benefits are subjective. Raising the deductible to more than $1,000 can save on the cost of the policy. This is because you are covering more of the cost of a potential claim. C. To avoid having to pay for hospital bills resulting from an accident they cause. Jobs that present higher levels of risk result in higher workers’ comp costs. The company has participated in OSHA's Safety and Health Achievement Recognition Program (SHARP) since 1998. The difference between price paid and costs incurred is profit. The types of work done by your employees. According to the National Highway Traffic Safety Administration ( NHTSA ), U.S. motor vehicle crashes in 2010 cost almost $1 trillion in loss of productivity and loss of life. Direct medical costs are only the beginning of the bottom-line impacts of a worker’s injury. B. An insurance policy requires that you pay a premium for coverage. If a customer pays $10 for a product that costs $6 to make and sell, the company earns $4 in profit. Going to a $1,000 deductible may save you even more. 40 The negligence standard had been formalized into algebraic terms. "P" is the probability the defendant's actions will result in an accident. "L" is the cost of that accident if it did occur. In general, the higher your deductible, the less your insurance policy will cost. It is clear that directly and indirectly, accidents reduce profitability. The total cost of work injuries in 2018 was $170.8 billion. Liberty Mutual Insurance Company, (2005). While emergency room and doctor visits, medical bills, medicines, and rehabilitation may be the most visible costs, the indirect costs of an injury generally total between four and ten times the amount of the direct costs. If an employee drives somewhere for work purposes and gets into an accident and badly injures someone or smashes a Tesla, say, the employer can be sued to cover the damages that the employee can’t afford to pay. Insurance, however, covers only a portion of the total accident cost. Christin Walker of Burlington, New Jersey, is a safe driver. This figure includes wage and productivity losses of $52.4 billion, medical expenses of $35.0 billion, and administrative expenses of $57.6 billion. "PL" is the risk of the activity, the expected liability of the discounted accident cost. The highest price we pay for car crashes is in the loss of human lives, however society also bears the brunt of the many costs associated with motor vehicle accidents. Total accident costs can be compared to an iceberg (Figure 1). Cost . A forest products company saved over $1 million in workers' compensation and other costs from 2001 to 2006 by investing approximately $50,000 in safety improvements and employee training costs. Your cost is calculated per $100 of payroll, so the larger your payroll, the higher your workers’ comp cost can be. Increasing the dollar deductible from $200 to $500 on your auto insurance can reduce collision and comprehensive coverage premium costs. Most homeowners and renters insurers offer a minimum $500 or $1,000 deductible. The deductible is the amount you must pay in the event of an accident or other claim. The thing to understand here is that vicarious liability can make a company liable for something that happens off premises. ... To help find the best hospital to care for people they injured in a car accident. 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