TRANSPORTATION SAFETY
What If We Invest In Safety ?
BY : THEO HOBBS , TRS CLIENT ADVISOR
BY : BRIAN DEAN CLIENT ADVISOR
For A Transportation Company , Driving And Safety Are Always On The Radar .
The route to lower insurance premium rates is lined with safety checkpoints that transportation providers must pass to reduce claims and , most importantly , protect their people , profit , and others sharing the road .
The fast-moving transportation industry accelerated during the pandemic , and demand hasn ’ t let up . But like other industries , a labor shortage is taxing trucking companies while at the same time , insurance carriers are toughening up their standards . That ’ s not a bad thing since the stakes are high when operating an 80,000-pound truck , trailer , and full load .
But there ’ s no room for error . It ’ s essential to fill those seats with trained , experienced , and qualified drivers who share a concern for safety above speed of delivery . Now is the time to review hiring best practices — and adhere to them . Advancing telematics technology can protect trucking operations , and implementing structured training programs can help emphasize a culture of safety .
Let ’ s answer some “ what-ifs ” that transportation businesses are tackling in this hard market .
WHAT IF WE EXPAND OUR FLEET WITH A FEW MORE TRUCKS ?
Buyer beware ! It ’ s tempting to go after a bargain if you find a used truck on the market with a mind to eventually put it to work . But think long-term — at least six months out . Instead of purchasing trucks for your fleet to satisfy immediate demand , consider whether that business is sustainable . If the tires aren ’ t moving , you still have monthly payments and insurance expenses .
Be sure to add newly purchased trucks and equipment to your insurance policy . And remember , most insurance policies require scheduling all units . Get physical damage coverage , no matter how old the vehicle is .
Pay attention to the truck-to-driver ratio . If you add three trucks and do not have drivers for them yet , your rate will increase . Stay as close to the 1-to-1 ratio as possible .
Review coverage at least twice a year with your insurance advisor . Values have skyrocketed , so a truck that was insured for $ 40,000 might be worth $ 60,000 today . If an accident happens , you could be out thousands of dollars — reducing your profit — because of a coverage gap .
WHAT IF I FORGET TO ADD A DRIVER TO MY POLICY ?
Even if you are road testing a driver to potentially hire , you must add this candidate to your policy beforehand . We had an incident where a trucking company added a driver to the policy only a couple hours before the road test — just in time . He rolled the truck and wasn ’ t even hired yet . But the company was covered .
Most policies are scheduled , meaning insurance carriers want to know the driver ’ s license number and birth date of the driver , otherwise a claim could be denied . For instance , a company added a truck and driver but neglected to add either to their insurance policy . The driver was pulling a full load and got into an accident . The carrier declined liability , bodily injury , and physical property . Don ’ t take chances .
WHAT IF WE USE TELEMATICS ?
Telematics can improve driver behavior and road safety . It can also potentially reduce insurance premiums because carriers see this technology as an indication that a company is focused on doing the right thing .
Owners can monitor fleets and drivers with onboard systems that gather data on driver behavior ( hard stops , speeding , etc .), vehicle location and activity , fuel consumption , and more .
The technology has advanced , and now there are systems with a weather overlay that allows an owner or dispatcher to identify risky conditions ahead on the road : rainstorms , high winds , blizzard conditions , etc . It can help the company make wise business decisions .
Telematics pays for itself and doesn ’ t cost much more than a deductible for installation . It can also reduce the cost of coverage . +
During Theo Hobbs ' 23 years of service with the Maryland State Police , he supervised troopers assigned to the Commercial Vehicle Enforcement Division and holds many FMCSA certifications . 410.213.5597 • thobbs @ deeleyinsurance . com
Brian Dean has seven years of experience in personal and commercial insurance and 30 years of experience in Fortune 100 foodservice transportation . 410.213.5543 • bdean @ deeleyinsurance . com
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