Whether you oversee a fleet of company vehicles or your employees drive their own cars for business, taking the right steps to manage on-the-road exposures is a must to reduce the risk of accidents and injuries and control losses. The reason? Commercial auto losses in the U.S. continue in an upward trend, rising for the fourth consecutive year, according to a report from the National Association of Insurance Commissioners.
To help combat this continued upward trend, consider if these nine practices are a part of your company’s operations:
- #1 Standardize driver qualifications and screening. Monitor driving records via state programs or other commercial applications.
- #2 Instill the importance of safe driving behaviors such as using seat belts, not driving aggressively, or driving while impaired.
- #3 Develop formal policies on distracted driving, driving schedules, use of personal vehicles, refresher training, and accident reporting protocols. Monitor for compliance. Follow through on consequences for those who are non-compliant and update policies as needed.
- #4 Consider using telematics data to help identify driver behaviors—like speeding or sudden breaking—that can contribute to accidents.
- #5 Leverage onboard diagnostics to capture data on your most critical vehicle-use parameters, such as speed, fuel consumption, and mileage to optimize routes and schedule maintenance.
- #6 Equip vehicles with “smart” sensors that can measure changes in light, temperature, and pressure and provide alerts to mechanical problems with brakes, electrical systems, tire pressure, and more.
Analyze and act
- #7 Benchmark accident frequency against expected rates, based on criteria like vehicle type, location, and industry, and compare it against that of peers.
- #8 Review telematics data and conduct interviews with drivers, managers, and others to identify the root causes of poor driving—such as fatigue, distractions, or tight delivery schedules—and develop action plans to address them.
- #9 Formalize a fleet management program that meets your company’s needs by partnering closely with an insurance provider that understands the spectrum of commercial auto risks – and has the consultative support and tools available to manage them.
When it comes to reducing your company’s commercial auto risks, contact us for more ways to maximize safety and control loss-related costs.
Choosing the right insurance agent is one of the most important decisions you will make. The Turner Agency Inc. has covered the insurance needs of the Upstate of South Carolina and beyond since 1962. Our team provides choice in coverage options from a carefully selected group of financially sound, reputable insurance companies; ease of doing business; and unparalleled advocacy on your behalf.