Driver Challenges on the Road
The safety of drivers continues to be a major concern . Nearly one out of every five drivers have experienced injuries while on the job . Amazon drivers specifically suffer two-and-a-half times more injuries than non-Amazon drivers . Even worse , one out of seven were injured so severely that they were unable to continue performing their regular duties . Amazon ’ s approach to the rapid delivery model comes at a high cost for the people tasked with meeting its goals .
Road fatalities remained on an upward trajectory , reaching a 16-year high . As many transportation businesses focus on chasing near-term profit over long-term growth , the hiring of inexperienced labor to meet unrelenting daily delivery goals only exacerbates the industry ’ s issues .
Operational policies and procedures are adopted to mitigate risks for both employees and other drivers on the road . Neglecting these policies and procedures only causes harm for individual businesses and industry . It is up to businesses to ensure they and their employees are living by their rules for both hiring and training .
In the emerging hazard category is extended exposure to record-breaking high temperatures . This year ’ s summer saw heat records broken around the United States daily . Many drivers are without air conditioning over their eight hours shifts , which can cause serious physical harm . In July , a doorbell camera captured footage of a UPS driver collapsing from the heat in Arizona . The viral video caused outrage and further criticism of lax employee safety efforts .
Gig-Worker Statuses Hurting Labor Retention
Beyond safety concerns , attracting and retaining talent is an ongoing problem . While there is a surplus of job openings in general , workers seem to be hopping from one company to another in search of better pay and benefits . Revolving door hiring models like Amazon employs , which use a loose contractual , gig-based structure are escalating the problem .
California governor Newsom ’ s Assembly Bill 5 is seen as a step forward in attempting to protect employee rights from exploitive contractual hiring practices . It is only a matter of time before other states begin to follow . To avoid legal action on a state or federal level , and bring stability to their operations , it is possible companies will transition from contractual hiring to full employment , which would greatly increase hiring and retention .
Swelling Payouts from Litigation
Claims cases going to full jury trial are swelling the costs of settlements . Many attention-grabbing cases are trending due to their egregious nature and high payouts . Following on higher rates of deadly accidents and labor difficulties , the costs incurred from a lengthy trial give underwriters reason for maintaining the hard market .
Costly Vehicle Repair
As transportation companies begin incorporating new vehicle materials and technology that allow for optimization of fuel and driver efficiency , the cost of repair is becoming more significant . Standard safety systems like cameras , GPS , blind-spot detection , and advanced braking systems all add up to an expensive liability . Beyond the replacement cost these components , they often require specially trained technicians for calibration , further inflating the repair costs .
Eyes on the Road Ahead
As the industry faces new and evolving challenges directly affecting business and the insurance market , Risk Strategies continues to stay abreast of these bumps in the road for deeper analysis as we learn more . Follow along in the
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Risk Strategies is a top ranked national insurance brokerage and risk management firm with more than 30 specialty practices offering comprehensive risk management advice and insurance and reinsurance placement for property & casualty , employee benefits , and private client services risks . Bryan Ice is a lastmile transportation industry veteran with more than 19 years of experience . He came to Risk Strategies through its acquisition of Brightstone Insurance Services . Ice is a 2003 graduate of Mercyhurst College .
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