The Financial Impact of Losses
White Paper Summary
Measuring the financial impact of a loss cannot be underestimated by motor carriers, especially those with narrow profit margins.
Losses can be broken down into direct costs and indirect costs. To illustrate this, try to imagine an iceberg. The tip of the iceberg represents the direct costs associated with a loss because they are easier to see or predict; they include paying your insurance deductible, renting a piece of equipment, or paying to tow a damaged vehicle. Indirect costs, however, are hidden under the water because they are harder to quantify. They can also be larger than those expenses that are visible to the eye. Indirect costs can include lost productivity, training expenses to replace an injured worker, or damage to the company’s reputation due to bad public press.
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