top of page
Indirect cost

ALL TRUCKS, ALL SIZES

Tractor Trailer

Straight Trucks

Pickup Trucks 

Dump Trucks

Auto Haulers

Tow Trucks 


What is the indirect cost of a loss?

While some indirect costs are easy to assign a dollar amount once they are identified, others may be more difficult to assess. Let’s examine the indirect costs that could be associated with our scenario:

Fines and Penalties – In a typical vehicular accident, one party will be cited for a traffic violation(s) in connection with an accident. In this case, you are that party. Because you are operating under Federal Motor Carrier Safety Regulations (not applicable to Vanpool operations), the accident may result in fines and penalties levied by the Department of Transportation.

Accident Investigation and Legal Proceedings – Accident investigation often involves research and many man hours, all of which add to an accident’s indirect costs. To help with the legal aspect of the accident, you may be off the road and instead spending time gathering records, information and assisting insurance company representatives, as well as your defense counsel. Furthermore, while your insurance policy will typically cover the cost of claims made against you, including legal fees for injury and property damage claims, it does not pay for expenses related to your criminal defense for violations of motor vehicle laws or regulations.

 Loss of Revenue – Because you may need to attend to certain aspects of your legal case and/or your vehicle will need to be repaired, the vehicle will sit idle, decreasing your efficiency and productivity. Trips may have to be canceled. These situations could result in a loss of revenue that is not recoverable under any typical insurance policy.

On-Going Expenses – Expenses such as fuel taxes, vehicle payments and permit fees must continue to be paid while the vehicle is not in operation.

Depending on its severity, an accident could make the local news and, because of the media’s attraction to accidents, coverage could extend regionally or nationally. This type of publicity could have a negative impact on your reputation, the potential for future income and even affect the transportation industry as a whole. Commercial vehicle operators should also note that many accidents will be recorded in your Compliance, Safety, Accountability (CSA)/Safety Measurement System (SMS) profile, which may be viewed by customers and potential customers. It is essential that you review your profile on a monthly basis and challenge any incorrect information using the DataQ process. The time and effort put into the DataQ process adds to the indirect cost of the accident.

Insurance Premium Costs – As a result of the accident, insurance premiums would increase in all lines of coverage. You may even have a difficult time retaining insurance coverage.

Punitive Damages – Where the defendant’s conduct is found to be intentional, willful or malicious, the courts may permit an award of punitive damages in addition to compensatory damages. Punitive damages are intended to punish the defendant and to discourage the conduct of the type in which the defendant engaged. Normally, punitive damages are excluded from a company’s insurance policy. This would mean money directly out of your pocket.

The information provided on this website by the Elizabeth L. Thompson Agency is for general informational purposes only and does not constitute professional advice. We strive to keep the information up to date and correct; however, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is strictly at your own risk.

Insurance products and services described on this website are subject to terms and conditions as specified by the providers. Eligibility for insurance coverage is subject to underwriting approval. The Elizabeth L. Thompson Agency is not responsible for any errors or omissions, or for any loss or damage of any kind incurred as a result of the use of any content posted, transmitted, or otherwise made available via this website.

Links to external websites are provided for convenience only. The Elizabeth L. Thompson Agency does not endorse or take responsibility for the content or availability of any linked sites.

Phone: 866-222-1349  TTY 711   Text Us: 678-489-6943     Fax: 770-909-0260

“Calling the number above will direct you to a licensed sales agent.”

GA-MS-AL-SC-NC-TN-FL-OH-IL-MI-PA-TX-AZ-CO-KY-NJ-IA-MN-VA

 Important Notice: Caller ID Spoofing Alert

We have been informed that our business phone number, 678-489-6943, is being used in unauthorized calls by third parties through a practice called "Caller ID spoofing." Please note that Elizabeth L. Thompson Agency does not make such calls. 

If you receive a call that appears to come from our number but seems suspicious, we recommend:

  • Not providing any personal information.

  • Call us directly at 678-489-6943 to verify if the call was legitimate.

We apologize for any confusion or inconvenience this may cause and appreciate your understanding as we address this issue. Thank you for trusting Elizabeth L. Thompson Agency.

bottom of page