If you're a business that operates within the transportation industry, it is imperative that you understand the importance of operating within DOT compliance guidelines. When you fail to do so, you open the door to a number of scenarios that can harm your professional reputation and your bottom line. Here are just some of the pitfalls that come along with failure to comply.
As a business owner, keeping your profits high and your expenses low is the formula you're always trying to complete. When you are not DOT compliant, you are only hurting yourself. Each violation typically comes along with a fine. If you are audited and are found to have multiple violations, you won't just receive a blanket fine.
You will likely receive a fine for each separate violation, which can quickly add up. Many penalties are also stair-stepped, which means with each subsequent repeat violation the fee will increase. The more you're paying out in fines, the lower your profits.
Loss of Business
The DOT has many areas where they are lenient; however, when it comes to compliance, this is not one of those areas. If your organization is a repeat offender, they will assess fines but for a certain period. At a certain point, the DOT can legally take more aggressive steps to shut your business down, by taking away your license to operate until the problem has been rectified.
For many businesses, even a few days of production halt is enough to send them into the red. While this step is often temporary, in some instances, it may be permanent.
Most business owners take steps to separate their personal finances from their business finances. However, if someone is injured or someone's property is damaged due to your failure to meet DOT requirements, your personal finances can come into play.
Many states allow victims to file lawsuits against a business owner to cover the costs of any damages they have incurred. This type of legal action could be financially devastating, especially if your business has already taken a financial hit over the incident. In some instances, criminal charges may even be filed if there is gross negligence.
Ensure you are taking steps to remain compliant, such as seeking out DOT compliance help. This step doesn't just help you avoid these unfortunate realities, but it is simply the right thing to do for the safety and protection of your equipment, team and other motorists on the road.Share