Methods to be Proactive on Loss Management

This publish is a part of a collection sponsored by IAT Insurance coverage Group.

Probably the most profitable fleets are people who have a proactive security tradition and do greater than what’s dictated by federal and state rules. They take full benefit of the sources out there to them, akin to telematics, sprint cameras, traction management applied sciences, established driver coaching, and comply with their hiring and retention methods accordingly. As well as, they have interaction in trade greatest practices and constantly search for methods to enhance security – entertaining options and proposals from others akin to consultants or their insurance coverage service’s Loss Management crew.

Listed here are 4 case research of fleet motor carriers using out there sources to handle security issues:

1. North Carolina-based common freight trucking firm | Fleet dimension: 33 energy models

Throughout a routine go to to a motor service, our Loss Management Specialist discovered this motor service had 92% of their drivers employed or leased to them for a couple of yr, which exceeded the 70% benchmark for retention charges. Additionally they decided that the motor service had an accident frequency beneath 8% through the present and prior two coverage phrases. Each indicated sturdy threat administration practices and helped IAT bind their enterprise for the subsequent coverage time period.

In the course of the coverage time period, nonetheless, retention charges and accident frequency each turned a priority. Retention charges dropped beneath 65% and their accident frequency and accident severity elevated.

An IAT Loss Management Specialist assisted the proprietor and the security director in evaluating the causes of the problems. It was decided that the motor service had not been adhering to its personal requirements for hiring and retaining drivers.

IAT’s Loss Management crew helped this fleet reinstitute and cling to a proactive security tradition. This helped them establish driver coaching wants and corrective actions. Resulting from these modifications, the motor service incurred no extra losses and driver retention charges improved.

2. Central Illinois-based common freight trucking firm | Fleet dimension: 40 tractors and drivers

This firm is seen as having a robust, proactive security tradition — one which goes above and past what’s required by the rules. They’re all the time searching for other ways to advertise security with their staff. Even with this security and threat administration strategy in place, they wished to search for additional methods to enhance their practices.

Working with their IAT Loss Management Specialist, the freight firm developed a CMV driving suggestions program just like that promoted by the Federal Motor Provider Security Administration.[1] To allow success, they included their very own in-cab digital camera information for a firsthand take a look at what can go fallacious, and in some instances, what has gone fallacious, and so they mentioned methods to keep away from these issues going ahead.

Right here’s how they do it: The motor service saves varied brief video clips of their digital camera information to indicate their drivers close to misses, precise accidents, errors by others, and distracted driving. Drivers are then requested to contemplate what they might have achieved in a different way or how the state of affairs may have been averted altogether.

Consequently, the corporate has skilled a rise in driver-initiated discussions about security and driving methods and enhanced its security consciousness communication throughout your entire operation. They proceed to search for proactive and other ways to carry enhancements to their general security tradition.

3. St. Louis-based trucking firm | Fleet dimension: 56 tractors and drivers

Kind and method violations are quite common — making up 25% of all roadside inspection violations. These violations develop if a driver fails to finish all of the required fields on their document of obligation standing on paper or digital logs. This St. Louis-based trucking firm was accumulating kind and method violations far past acceptable requirements.

To handle the problem, their IAT Loss Management Specialist helped them develop mock inspections on their property. When drivers got here to the yard, they have been required to finish a mock roadside inspection with imitation DOT officers who ‘pulled drivers over’ and carried out varied ranges of inspections with the fleet of drivers and tools. They targeted on the massive image of a roadside inspection, but additionally on kind and method violations. Due to the preliminary success of this system, the trucking firm continues to make use of it throughout new driver orientation and can carry again mock audits for your entire fleet each six to 12 months. The success of those inspections has helped decrease their HOS Fundamental rating from 80% to 55%.

4. Phoenix-based trucking firm | Fleet dimension: 20 energy models

As an organization with a proactive security tradition, this motor service wished to strengthen the significance of pre-trip inspections with their drivers. So, they ready a tractor with two out-of-service violations and 6 non-out-of-service violations at their terminal. As drivers returned to the terminal after their load was full, they have been requested to carry out a pre-trip inspection on the ready tools and establish all violations.

Drivers who couldn’t discover all of the violations needed to overview that data with their security director to keep away from future violations that would have been found throughout a high quality pre-trip inspection. Now it’s a part of their ongoing coaching and orientation course of with new drivers. These efforts might help the enterprise cut back prices of potential inspections, violations, and accidents, all a direct reflection of their proactive security efforts and tradition. The corporate discovered success in implementing this process. It elevated driver consciousness and though early within the implementation to see noticeable CSA rating enchancment, the overall variety of violations have began to say no.

The important thing to stopping issues of safety

The widespread denominator amongst these 4 tales is every fleet’s willingness to simply accept and perform greatest practices to forestall issues of safety and management loss. They leverage out there sources, together with their insurance coverage service’s sources, to proactively monitor and enhance their security applications. With this strategy, fleet motor carriers can place themselves for better future success.


Have a query on the way to mitigate threat? Electronic mail [email protected] for an opportunity to see your query answered in a future weblog.

By Nick Martin

[1] Federal Motor Provider Security Administration “CMV Driving Tips – Overview,” February 10, 2015.

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