{"id":10998,"date":"2021-05-05T13:47:25","date_gmt":"2021-05-05T11:47:25","guid":{"rendered":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/?p=10998"},"modified":"2021-05-05T13:47:25","modified_gmt":"2021-05-05T11:47:25","slug":"insurance-4","status":"publish","type":"post","link":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/2021\/05\/05\/insurance-4\/","title":{"rendered":"Are you insurance worthy?"},"content":{"rendered":"

Here are some training tips to help with renewals.<\/span><\/p>\n

\n

For any business operating trucks, insurance is often a wild card. In some years, insurance agencies want your business and offer stellar rates. In other years, there seems to be a tighter market where rates escalate.<\/span><\/p>\n

That seems to be the mood of the market going into 2020, especially since it\u2019s been reported that insurance companies in the trucking segment have been posting 120% loss ratios over the past several years.<\/span><\/p>\n

That ratio has been impacted by several \u201cnuclear\u201d verdicts \u2013 one large carrier, for example, was recently ordered to pay more than $40 million in damages from a fatal accident that occurred in 2017. What\u2019s more, several large carriers closed their doors this year, many citing the soaring cost of insurance as a catalyst to their demise.<\/span><\/p>\n

In the process of working with fleets and insurance providers on driver training, we\u2019ve found the issues that can prove to be the most damning for fleets in court often occur when they\u00a0don\u2019t give as much thought to their driver training program as they should.<\/span><\/p>\n

One significant trigger is evidence of insufficient or negligent training in the fleets\u2019 own records. Claims specialists at leading insurance providers say that during the deposition process or in court, the plaintiff\u2019s attorneys will often ask for the fleets\u2019 training records.<\/span><\/p>\n

\u201cAttorneys have a checklist of things they ought to be requesting,\u201d said Don Huston, senior claims specialist with Sentry Insurance. \u201cWe\u2019re seeing the records-request letters more often.\u201d<\/span><\/p>\n

Another potential trigger? Lack of evidence the training programs were ever implemented. After all, however good it may be, its mere existence isn\u2019t a good defense if there\u2019s no record of implementation. Risk management experts say\u00a0that without something to verify training took place, courts will likely assume it didn\u2019t.<\/span><\/p>\n

With insurance companies holding the cards on which fleets they will cover, and how much of a premium they\u2019ll charge, how do you best position yourself to be \u201cinsurable\u201d at the best rate?<\/span><\/p>\n

Accident history is obviously the top indicator, but insurance companies look to see what you\u2019re doing to prevent accidents in the first place.<\/span><\/p>\n

When analyzing your company at insurance renewal time, risk consultants review the company\u2019s track record, and what the company has been doing in all areas of safety. The consultants then provide that information to underwriters who have to price the risk. Driver training is always something the risk consultants look for, and there are clear differences between fleets that manage this well, and fleets that don\u2019t.<\/span><\/p>\n

The good news is that developing a verifiable training program is not rocket science, and the basics can be adapted by anyone who wants to get on the right track and build a high-quality improvement program.<\/span><\/p>\n

Keep it going<\/strong><\/span><\/h3>\n

Providing solid training at orientation is a great way to get drivers started off well, but don\u2019t stop there. Ongoing, regular refresher training keeps drivers thinking about safety long after orientation is done. With an increasing selection of online tools available on the market, quarterly or even monthly training assignments are easier than ever to deliver. Those assignments can combine safety and regulatory basics with some company-specific details and be designed to take advantage of seasonal issues. For example, winter driving in the fall; dealing with construction and pedestrians in the spring; school bus and student awareness in late summer; etc.<\/span><\/p>\n

By mixing up different topics, combining basic regulatory tutorials and testing with company, equipment, and even customer-specific content, the sessions stay fresh and keep drivers on their toes.<\/span><\/p>\n

To really build a best-in-class driver training program, and have that training incorporate online, classroom, and practical training elements so drivers get to experience the subjects in different ways, we recommend one quarter having an online refresher about some part of the daily inspection, then the next quarter it\u2019s a practical activity demonstrating those inspection skills.<\/span><\/p>\n

Track what happened<\/strong><\/span><\/h3>\n

Lawyers explaining how to avoid \u201cnuclear verdicts\u201d in court always talk about having proof of everything the company does. The oft-repeated phrase is \u201cif you can\u2019t prove you did it, it didn\u2019t happen.\u201d Keeping track of training activities is a critical part of that.<\/span><\/p>\n

\u201cTracking activities\u201d used to mean having a sign-in sheet for driver meetings, but that\u2019s no longer sufficient \u2013 the driver may have signed in when they arrived, but did he or she stay for the whole session? Was anything learned? Those are questions a litigator could easily ask. How would you respond?<\/span><\/p>\n

More complete tracking of activities \u2013 what people did, when they did it, and how well they did \u2013 is critical to demonstrate that the training program is actually working the way it should. That should include data tracked through online tools, checklists for practical activities, and tests or other proof-of-learning that happens in classroom courses. Online systems are great for tracking that, plus they can generate reports on demand. Paper files are fine — if they\u2019re organized and complete.\u00a0Organized is the key word here: nothing says \u201csloppy, negligent fleet\u201d quite like a giant box of disorganized paper driver files. Keeping driver files and training history organized is much easier to do with an online system to manage it, which is part of the reason insurers and risk consultants often recommend them.<\/span><\/p>\n

Follow up<\/strong><\/span><\/h3>\n

Once those quarterly sessions are up and running, it\u2019s tempting to think that all the work is done. But just having people complete training isn\u2019t enough \u2013 you need to follow up and make sure they\u2019ve actually learned something. Insurers are trying to determine how well the fleet manages its risk, and having a great training program is certainly a solid start, but it\u2019s only a start. The training program, if everything is tracked as recommended above, provides a mass of data. Doing something with that data is how you truly manage the risk.<\/span><\/p>\n

Are all drivers completing the assigned training on time? If not, what are you doing about it? For drivers who struggle to complete things, or show gaps in knowledge or ability, how are you helping them?<\/span><\/p>\n

If you\u2019re not doing anything in those areas, then you\u2019ve only got half the puzzle solved. If you don\u2019t make sure that people are absorbing the training information \u2013 that it\u2019s sticking — and measuring the improvement in performance as a result, then it\u2019s really hit and miss as to whether it\u2019s going to do anything to improve your risk profile. Some people will certainly learn something, and some things will get better, but it\u2019s definitely not a reliable, diligent process. You also won\u2019t really know what parts are working, so you won\u2019t be able to improve the overall program.<\/span><\/p>\n

On the other hand, if you\u2019ve got a program where you review the results of the quarterly assignments and work with the people who are struggling, it ensures that everyone is participating. This gives you much better data on what parts of the program need additional refinement and ensures that you\u2019re seeing the results you expect. That not only delivers a better return to the business, but also demonstrates a strong commitment to improving safety in the fleet.<\/span><\/p>\n

That\u2019s the kind of thing that the underwriters like to see. And if they see that, then you\u2019re well on your way to becoming an insurable fleet.<\/span><\/p>\n<\/div>\n

 <\/p>\n

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Mark Murrell is co-founder of CarriersEdge<\/a>, a leading provider of online driver training for the trucking industry, and co-creator of Best Fleets to Drive For, an annual evaluation of the best workplaces in the North American trucking industry produced in partnership with the Truckload Carriers Association.<\/i><\/p>\n<\/div>\n

By Mark Murrell<\/a><\/span><\/p>\n

Source: https:\/\/www.fleetowner.com\/<\/a><\/span><\/p>\n

CUT COTS OF THE FLEET WITH OUR AUDIT PROGRAM<\/strong><\/a><\/h3>\n

\"\"<\/a><\/p>\n

The audit is a key tool to know the overall status and provide the analysis, the assessment, the advice, the suggestions and the actions to take in order to cut costs and increase the efficiency and efficacy of the fleet. We propose the following fleet management audit.<\/p>\n

FLEET MANAGEMENT AUDIT<\/strong><\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"

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