White Paper

The Financial Impact of Losses

Typically in the trucking industry, each motor carrier relies on the loss runs provided by the insurer to gauge the severity of claims, but these numbers do not paint a complete picture of the loss impact on operations or the company’s bottom line.

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.

 

RiskCentralButtonV1-250

To learn more about ORGIG, please visit their website.

The General Insurance Group is the largest business segment within the Old Republic Insurance Group and specializes in the property & casualty marketplace. Each company focuses on a select segment, offering specialized insurance coverages or specializing by industries. This is our competitive advantage. While collectively we offer a full suite of risk management and insurance solutions, our expertise in unique industry segments is unsurpassed. We serve large corporations with complex risks, small and mid-sized companies, and consumers with home and auto warranty offerings.

More from Risk & Insurance

More from Risk & Insurance

Risk Matrix: Presented by Liberty Mutual Insurance

11 Crucial Trends That Are Impacting the Construction Industry Today

Increased hurricanes, opioids, women workers and more are just some of the latest trends driving construction risk.
By: | November 1, 2019




The R&I Editorial Team can be reached at [email protected]