Hunter Nelson breaks down how indirect costs from vehicle claims can multiply your direct claim expenses by 2 to 20 times. A $1 million claim bill could actually cost $2 to $20 million when you factor in lost productivity, absenteeism, and damaged company culture.
But one thing I do want to make people aware of is that this stuff is worth investing in. When you guys have a claim, let's say you guys are a decent-sized fleet and you guys have $1 million in claims, typically the indirect cost is 2 to 20x— and this is a statistic, not something I'm guessing on— uh, of the direct cost. So it's probably going to cost you guys $2 to $20 million in indirect costs, whether that's culture, People not want to work as hard, less productivity, keep people being out, opportunity cost.
