The Company Car: How A Car Accident Can Impact Your Business Finances

The business world is a busy sphere with many things happening at once. Business owners are forced to worry about numerous things, and one of those is auto accidents and how they can impact finances. In 2016 alone, an approximated 40, 000 people died in vehicle accidents as indicated by the National Safety Authority. As a business, it is essential to think about motor vehicle accidents and the impact they can have on your business finances. This will allow you to protect your business and prevent losses that may even lead to consolidation of the company.

The Company Car: How A Car Accident Can Impact Your Business Finances

Claims Increase Your Rates

After a car accident, you will most likely file a claim with your insurance company. While this helps in auto repairs and saves you from incurring losses, it could impact your expenditure in the long run. Whether you or one of your employees was involved in a minor or fatal accident, you can expect your premiums to rise significantly. Drivers who make a single claim of around $2,000 or more have their rates increased by approximately 14 percent. When you calculate annual premiums after this increase, you will realize that this is an additional expense to the business that cannot be ignored.

Court Cases Hurt Your Reputation

When a company car is involved in a fatal accident, the event can destroy your business reputation. In an instance where the other driver goes to court to seek compensation, your company’s name will be dragged through the mad with a serious of court hearings. This causes you to lose valuable clients. No one wants to associate with a business with reckless drivers—at least that is how the public views you, the company, and its workers.

Since accidents are inevitable, the best you can do is save your business from incurring financial losses as a result. Hire an experienced car accident lawyer to represent the company in the legal suit and clear the business name in the process.

You Incur Medical Expenses

When a car accident causes fatalities and severe injuries, the business can suffer considerable losses in medical costs and employee compensation. For instance, most fatal side-impact collisions are known to cause severe injuries, including head traumas, neck, and spinal injuries, or even death. If your driver was not at fault, you need to find a side impact collision lawyer to ensure that the occupants of the company vehicle receive compensation. Failure to do this will cause the business to incur the expenses as the individuals were injured in the course of their work.

No one anticipates a car accident, especially one that involves the company car. However, when it happens, you want to ensure that the business is prepared to face the circumstance without incurring losses. Consult an experienced accident lawyer to ensure that you receive professional representation in legal matters after the accident.