As seen in Bulldog Magazine | 2019 Volume 3
Bulldog Magazine recently published an article featuring several ways fleets use technology and safety initiatives to reduce insurance costs. It’s no secret that insurance costs alone account for one of the greatest expenses a trucking company endures.
Aside from the traditional risk of the business, if you’ve been following our Transportation Tuesday email series, you’ve seen EPIC highlight the rising costs of settlement and litigation also impacting the industry’s insurance premiums. Pair that with a shortage of qualified drivers and low truck supply. What can a trucking company do to manage its costs?
EPIC’s VP of Transportation and Logistics Risk Control Michael Nischan says fleets need to be obsessed with safety.
Companies can’t afford to be anything less in this industry. EPIC recently reported on the rise in nuclear verdicts following trucking accidents, and Nischan points back to the jarring numbers with this reminder:
“It used to be that we were seeing verdicts of $750,000, maybe up to $5 million, but in the past few years we have seen staggering numbers – $10 million, $20 million, $50 million, even $90 million verdicts,” said Nischan.
Featured prominently in the article, Nischan goes on to deliver the following advice:
- Review SMS reports each month to look for things like the type of moving violations the fleet has been cited for, the types of maintenance issues found during roadside inspections, and percent of out-of-service violations for drivers and trucks.
- Figure out what the trends are and then address them by applying your policies, procedures, training, and disciplinary actions to change behavior.
- Technology alone is not enough. The company needs to have someone who is accountable for the overall risk management, compliance, and safety process.
- When you install a camera, give feedback and provide coaching and ongoing training. This will change the company’s safety culture as well as driver behavior.
