Tag Archive for: Insurance

Premier Safety Culture Advice – Read NOW

Premier Safety Culture Advice

The turning point in trucking lawsuits often lies within the deposition and discovery phase. You and your attorney will set the tone during discovery that carries through the rest of the case. This article contains premier safety culture advice from top leaders in the trucking industry.

One of the biggest factors that can determine the outcome of the lawsuit is the existing culture of safety in your company.

What is Culture?

Let’s break it down.

Culture is a collection of beliefs or systems held common between a group of people. Widespread groups could be as big as a country or even worldwide.

Language is an example of culture. English is the cultural language in the United States. While there are many different languages spoken in the states, it is the most commonly used between this particular group of people.

Culture can also refer to much smaller groups, even within your own immediate family. Think about your traditions, your habits, or even inside jokes between the people closest to you.

For example, during Thanksgiving dinner (which is also a cultural example), let’s say a particular family will only accept cranberry sauce in the shape of a can. If homemade cranberry sauce simply will not do, the family has created a traditional culture featuring cylindrical fruit spread with lines imprinted in the side.

Silly, yes. But a clear example of how culture shifts between groups, as some families may find homemade cranberry sauce the only option. Once a culture is set and accepted by a group, it can be longstanding, even with no real foundation.

What is Safety Culture?

If you are reading this, you are likely already aware of what “safety” means in the trucking industry. For those of you who work in the safety department, this concept is woven into the fabric of your career.

But for those who think safety only refers to the safe operation of motor vehicles, you may be fascinated by this conversation. While truck drivers are expected to always drive safely, safety as a culture refers to so much more.

In trucking, safety personnel are responsible for:

Fleet-wide safe driving, clear communication, ongoing training, technology, data analysis, performance, reviews, coaching, corrective action, accountability, maintenance, federal regulations, time management, documentation, accident response, hiring and retention, orientation, and proper background check before the driver is even hired.

This is a snapshot of the job description of a safety professional. Good safety directors have policies and procedures in place to keep control of all aspects of safety. Great safety directors make sure their employees stick to their safety protocols daily.

Unbeatable safety directors make sure their company cares. That is safety culture. If a safety director can make every person in the company passionate about safety, a culture of safety will form. This culture of safety impacts everything from the company’s reputation to insurance renewal rates, even legal liability.

Why is Safety Culture Important?

A culture of safety starts when you hire the right team, hire the right risk manager, and you hire the right lawyer. Building the right team starts with you. Look for people that will be part of the safety culture you create.

Strong safety culture has even been the determining factor in some nuclear verdict lawsuits. Trucks are a big-ticket target for personal injury attorneys.

Why? Here are two scenarios. Both will take place on the same highway. Both accidents occurred under the same driving conditions, under clear skies, sunshine, and no visibility obstructions. The only difference is the day of the occurrence and the victims.

Scenario 1: A drunk driver in a beat-up, rusted, uninsured Chevy 2-door sideswipes the rear panel of a minivan on the highway. The minivan spins across two lanes of traffic and skids off the highway into a row of trees in the median.

All passengers were injured and taken to the hospital. One suffered only scratches and a stiff neck, but x rays of the other passengers revealed multiple broken bones.

Scenario 2: An 18-wheeler is traveling down that same highway, entering his 12th hour of driving that day. The driver of a giant SUV becomes distracted by an incoming text message.

The driver does not realize the trucker ahead indicated intent to change lanes a hundred yards back.

The truck driver uses the clear chance to slowly move into the other lane and never connects with the SUV.

The SUV driver, finally looking up from their phone, panics at the unfolding scenario, overcorrects the steering, and drives into the median into a row of trees.

The airbag deploys and the SUV driver is left with severe back and neck injuries that require surgery.

Which Case Would Win?

In scenario #1, the drunk driver was clearly at fault. The family may choose to sue the driver for putting them through so much pain and suffering. They may have difficulty finding a lawyer to take the case because:

  • 1. The drunk driver has likely received an intoxicated citation, meaning justice was served.
  • 2. The drunk driver was uninsured and driving an old, low-value vehicle. There is no insurance to cover the cost of a settlement.
  • 3. Even if they win the case, they will likely never recoup the verdict award.

Attorneys will pounce on the chance to try scenario 2, however, since trucking companies are required to hold at least $750,000 in coverage.

Technically, the truck driver was not at fault but was operating outside of federal regulations by driving over 11 hours that day. Even if the driver was alert and operating safely, that one detail can mean a nuclear verdict is coming.

Safety Culture Risks

Experience

Trucking has its fair share of newcomers; young drivers who did not grow up around trucking. It may be more of a job to them than a career. For a safety director, simply knowing that your company hires less experienced drivers can be a liability.

On the one hand, you can mold those drivers into proper truckers. Their lack of preconceived ideas gives you the opportunity to hire and train them based on your expectation.

The risk, however, lies in their lack of experience and perhaps their desperation to find a decent-paying job rather than their dedication to trucking.

When you bring them on, you must look for people who take pride in their work that you can build a long-term relationship. The longer they are with you, you build confidence in their performance.

Training

A majority of trucking companies are turning to technology to make their drivers better, reduce CSA scores, and prevent accidents. Since so many companies now employ regular training, the lack of a training system can be a liability.

Learning management systems are the ideal software solution for trucking companies. Mobile accessibility is a game-changer since truckers can participate from anywhere. Now, truckers can receive training individually from their phone rather than being routed into the terminal for safety training.

Training your drivers on a regular basis proves that you are focused on safety and being proactive. The jury will see that you are taking steps to prevent accidents, rather than only responding to them.

Policies

If you have a strict termination policy in place, make sure you follow it, especially if your policy includes the words “always” or never. If you get sued for an accident that included rare circumstances, these words can wrap you up in court.

For example, your best driver could be involved in an accident while talking to their dispatcher on a hands-free device. Even if this is the first offense for a 20-year veteran, you may have to consider termination. Especially if your policy states: “Drivers will never use mobile devices while operating a vehicle.”

If you get sued for the accident, plaintiff attorneys will research your policies during discovery. If you failed to terminate that driver, ignoring your own policy, you will be in a bad spot.

They will blast you on the witness stand in front of a jury. A great attorney can paint you as an evil monster and get the jury to turn against you. This is the Reptile Theory tactic. Read more about Reptile Theory in our eBook: Avoiding Nuclear Verdicts.

Avoiding Nuclear Verdicts eBook

[gravityform id=”92″ title=”false” description=”false”]

Who You Need on Your Team.

Internally, you need a dedicated risk-safety individual who will stand up for you but has the temperament to handle drivers, the motoring public, lawyers, etc.

Find someone who is familiar with all the regulations, is safety-conscience, takes pride in your company. This person will represent everything your company stands for.

You will need to find the right insurance adjuster and broker, preferably a trucking expert. Your risk assessor will work with them directly to report accidents as soon as they occur. Your insurance company should advise you on accident best practices, what to document, and even how to act at the scene.

You will also need an attorney with extensive knowledge of the trucking industry. Billboard lawyers will not settle for a new bumper for their client. They want your whole company. Your attorney should be likable, personable, and partners with your risk assessor. If your attorney does not appeal to the jury, it can hurt your case.

Infinit-I Workforce Solution protects your company from nuclear verdicts.

Read More!

55 Things We Learned from an Expert Insurance Underwriter

/0 Comments/by

55 Things We Learned from an Expert Insurance Underwriter

55 Things We Learned from an Expert Insurance Underwriter

Insurance premiums and renewal rates continue to be one of the biggest expenses incurred by trucking companies. Rates have increased exponentially in recent years due to accident frequency, truck driver shortage, and the ever-present threat of nuclear verdicts. But, we are here to help. We set out to learn about the underwriting process including:

  • – Assessing a Trucking Company
  • – Premium Increases
  • – Technology Factors
  • – COVID-19 Impact
  • – Safety Culture Influence

Download your free eBook from Infinit-I: Avoiding Nuclear Verdicts

[gravityform id=”92″ title=”false” description=”false”]
We interviewed Tony Hoff of Napa River Insurance about the underwriting process for trucking company insurance assessments. He gave the most interesting and data-packed presentation I have ever seen! I could barely keep up with all the notes.

Infinit-I Workforce Solutions presents: 

55 Things We Learned from an Expert Commercial Auto Insurance Underwriter.

Underwriting Process

  1. Fleet managers and front-line operations are the ones who must maintain the safety culture with the drivers. If they are not ‘singing the safety tune,’ no one is.
  2. Operations MUST believe in safety culture and live it every day. It is a continuation of the top-down culture that insurance underwriters take into consideration.
  3. Underwriters will not convince you that safety culture is important. You should already be living it.

“Safety is doing the right thing for a long time.” – Tony Hoff, Napa Valley Insurance

Industry-Wide Premium Increases

  1. 15-20% Increase in premiums across the industry without a horrendous loss. If you have incurred large losses, you can expect more.
  2. Underwriters consider 5 years of data history.
  3. Excess limits are more costly and difficult to fill. They are not priced to have a loss every single year.
  4. Results in commercial insurance carriers leaving the market because they can no longer afford to write commercial auto coverage.
  5. Capacity is on a steady decrease as insurance carriers leave the market. When you lose money from a loss standpoint, you don’t want to underwrite anymore.

COVID-19 Effects on Insurance

  1. In the beginning, COVID-19 slowed everything down in the commercial auto insurance market.
  2. Initial reduction in claims due to:
    • Less congestion on roads
    • Increased productivity
    • Fewer losses
    • Decreased accident frequency
  3. The trucking industry rebound has led to more claims due to the resurgence of traffic, congestion, and sudden backups.
  4. Speeding is OUT OF CONTROL!!! Unsafe Basic scores are rising across the board.
  5. “Accident rates are increasing at an unprecedented level. We need to slow these drivers down.”

Premium Increase Factors

  1. Everything is more expensive. (Claims frequency and amount, medical coverage, defense attorney fees.)
  2. Insurance companies are seeing losses where their vehicle never touched the insured truck but are still paying out.
  3. Plaintiffs are getting better at what they are doing. Ten years ago, they did not even know what a CSA score was. Not they could teach you about CSA.
  4. There is a lot of uncertainty in trying cases. Settling may be cheaper than going to court (fees/attorneys) even if you were clearly not liable.
  5. Loss development – the longer the claim is pending, the more it costs.

“A 300% increase in 6 years is dramatic. It is unsustainable. Something has to give. Who is it going to be?”

What You Can Control

  1. Know the process – know what steps of underwriting consist of.
  2. Underwriters who have time to thoroughly vet the submission feel more comfortable writing.
  3. Strongly suggest you shop early. Get ready at least 3 months before renewal. Have your documents ready.
  4. If you are going to shop with more than one broker/carrier, have a standard submission-ready.
  5. Know where you stand. Is my expectation to get a decrease? Or do I want to manage my increase?
  6. (Loss Ratio + Incurred Total Loss) / Your Premium. If you are over 65%, your insurance carrier is losing money.

Safety Culture

  1. Online continual training is key in proving your commitment to safety.
  2. Look at your drivers’ attitude. Do they accept responsibility? Are they willing to learn?
  3. It is absolutely crucial to have a remedial training program. Find drivers’ weaknesses and coach them.
  4. Insurers look at loss development, are you trending in the right direction. If you have a stellar loss history, a new loss may not significantly affect your premiums.
  5. Find the carrier that you enjoy doing business with and then figure out the pricing.
  6. Put some faith behind your trusted safety program. Invest in yourself.
  7. Let Underwriters know what makes you “Best in Class.”
  8. Be prepared for renewal, provide a packet with the following documents:
    • Financial documents and review
    • Loss History
    • Insurance History
    • Profile of Operations
    • CSA Roadside Results
    • Reportable Accidents not on Loss Run
    • Onsite Loss Control Survey

Be a Real Partner

  1. Solidify a business relationship with your Insurance Partner.
  2. You can get a quote from anywhere, be engaged.

Technology

  1. Track everything. You can’t know where you are trending unless you can track it:
  2. Turnover, Retention, Ops Performance, CSA Scores, Driver Safety Performance, Loss Trends, Accident Costs, Recordable Accident Rates, Total Accident Rates, Insurance Costs
  3. Benchmark yourself and maintain accountability.
  4. Find out what metrics are causing your losses and attack those.
  5. Use front end data to make back end decisions.

“Safety Professionals who make future decisions based on past results and analysis are the most effective. BE PROACTIVE.”

  1. “Every lawsuit involves being able to produce documents quickly. “Have you trained your drivers? Can you provide the documentation that you’ve trained your drivers?” Camera/online training combination can take a nuclear verdict and knock it out of the courtroom.” – Mark Rhea
  1. The greatest myth in trucking is that safety is too expensive. The advanced technologies that are now in place are a game changer in the industry. Technology is embraced by insurance companies because it gives us a claims “edge” that we otherwise would not have.
  1. Onboard cameras and collision mitigation are proven to influence courtroom decisions. BUT it only makes sense if you are willing to act on the data. You will need to have policies in place before you utilize these technologies.

Addition Tips from the Underwriter

  1. We will look at how many times you have switched insurance carriers in the past.
  2. If you have favorable loss history that extends beyond 5 years, and then have a bad year, it will come up at renewal. You need a relationship history with your insurer.
  3. Be 100% honest about what kind of carrier you are and what makes you the best.
  4. Bring to renewal: What do we do best? What do we need to do better?
  5. Have Best Practices in place, not the easy out. (PSP, Long-form physicals, etc.)
  6. Invest money in the onboarding process. Invest in your training.
  7. 10% of drivers cause 90% of your problems. Get them in and coach them before we lose them.
  8. Reporting the issue is huge! We track day loss happened vs. when it was reported to us.
  9. 3 things that will result in plaintiff verdict:
    • Leaving the scene of an accident.
    • Failure to report an accident.
    • Positive drug test after accident.

Insurance Take-Aways

  1. 2021 will continue to be a very challenging year from an insurance standpoint.
  2. Losses are up and so is speed. Slow your drivers down.
  3. We are living in different times and we need to adjust.
  4. What makes you an exceptional risk? Can we fix those areas that are not exceptional?

“Safety Culture = Commitment. If everyone in your organization stays committed, you WILL succeed.”

Get Your Insurance Questions Answered!

MCIEF Founder Tommy Ruke is Ready to Answer Your Most Pressing Insurance Questions. 
Learn Real Solutions to Your Insurance Problems. 

Infinit-I Workforce Solutions has partnered with the Motor Carrier Insurance Education Foundation (MCIEF.org) to help you get your insurance questions answered. Infinit-I and MCIEF have joined together to provide access to “Ask Tommy”.

This is a service provided to MCIEF members, but it is being opened up to Infinit-I visitors to give you the opportunity to ask your most pressing insurance questions. To submit your questions, click here.
/0 Comments/by

Infinit-I Quickly Minimizes 4 of the ATRI Top 10 Industry Concerns

Every year, the American Transportation Research Institute releases an annual report regarding the top 10 concerns of trucking professionals for this year. The ATRI spends months gathering data through surveys, analyzes responses from all over the industry, and releases information on key focus areas for the upcoming year.

Infinit-I offers instantly deployable solutions to several of these topics. Minimize four of the top 10 trucking industry concerns today.

CSA Score

The CSA program ranks professional drivers based on their performance and safe driving record. CSA points are based on a truck driver’s actions based on the severity of the infraction and then awarded to the driver’s employer. It can be assumed that a company with a high CSA score employs a fleet of unsafe drivers.

An elevated CSA score will negatively impact the overall success and profitability of a trucking company, mainly regarding insurance eligibility and costs.

Infinit-I offers a comprehensive CSA module (84 videos and 7 expert webinars) specifically designed to reduce CSA scores through awareness and behavioral changes. This module is immediately deployable to your entire fleet.

Hours of Service

Frequently shifting regulations have led to confusion and misunderstandings surrounding the hours of service changes that took place this year. Drivers now question when to switch to off-duty, whether they can take an extended break, and how their detention pay will be affected.

Drivers who are not fluent in the new language presented in the HOS regulations are liable to receive violations for HOS infractions. Even simple mistakes can lead to non-compliance violations that pose a serious impact on CSA scores.

Proactivity and training are your best option to avoid violations and preserve (and even reduce) your CSA score. Our course catalog contains a 10-part series that breaks the entire concept down into easily digestible, microlearning sessions designed for knowledge retention.

Insurance Costs

Freight operators are continuously challenged by the rising cost of insurance for commercial vehicles. In recent years, numerous trucking companies have had no choice but to cease operations in surrender to rising insurance premiums.

One way to reduce your insurance costs is to manage your risk. Invest in your safety culture by curating the safest fleet on the road. Proper continual training of your fleet will lead to improved driver behavior and break negative behavioral patterns.

Company culture, awareness training, technology usage, etc. are all intangible factors that will influence your insurance renewal rate. Infinit-I provides you with all the training you need to prove your dedication to safety and your fleet’s performance enhancement.

Driver Retention

As with any job, adequate and competent leadership can make or break an employee’s satisfaction. This is especially true in trucking, where the number of jobs industry-wide heavily outweighs the number of drivers.

The driver shortage creates an imbalance that favors truck drivers over trucking companies. A driver can leave one company for any reason, post a resume, and have the phone ringing in minutes from quota-hungry recruiters scouring the nation for drivers.

In the haze of fluorescent lights, computer screens, and KPIs, we can become laser-focused on creating the safest and most efficient fleets on the road. In doing so, it is easy to forget your drivers are people. They deserve respect and loyalty, too, especially since their job takes place out on the front lines at the heart of the operation.

Your operations team and your drivers should be experiencing a fulfilling relationship: one of give and take, one of bonding, one of mutual respect. If your dispatchers and drivers aren’t experiencing a fulfilling relationship, the job is simply not worth it. They will move on.

The average onboarding cost of one truck driver hovers around $10,000. How many new drivers do you bring on per year? Most trucking companies experience between 85-105% turnover. Our safety program is proven to significantly reduce turnover rates. One extremely successful client experienced a 53% reduction in turnover after implementing our platform.

While a 53% reduction is the best-case scenario, consider how a modest 5% reduction in turnover would impact your bottom line. With a fleet of 100 trucks, a 5% reduction would save your company $50,000 annually. Use the following formula to figure your savings.

Premier Event

In collaboration with the ATRI president and COO, Rebecca Brewster, Infinit-I is proud to present effective solutions to the Top 10 trucking industry concerns rolling into 2021.

ATRI Explains – Top 10 Concerns

  • – Examination – Each concern is explored in-depth
  • – Impact – How each concern affects your company
  • – Preparation – What you should do now
  • – Solutions – Maximize business outcomes

Join us for expert advice on how to strategize, develop, and deploy a plan of action designed to meet safety-related challenges head-on. Learn how Infinit-I can greatly minimize at least 4 top worries of 2020.  Check out the replay here.

Rebecca Brewster employs an ​unwavering commitment to the trucking industry, made apparent by her award-winning performance and contribution to the trucking industry in her 27 years at ATRI. The information presented by our featured speaker will prove to be invaluable to your company.

Want to minimize these top concerns within your company? Find out more – schedule a demo.

/0 Comments/by

Top 6 Trucking Industry Updates for Safety Directors – Q4 2020

This week’s webinar hosted two trucking experts discussing upcoming industry updates. We are prepped and ready to share all the information you need to protect your fleet. Huge thanks to Mike McConnell of TSM trucking for sharing information directly from the 2020 Safety Management Council Policy Conference. This article explains the top 6 industry changes discussed at the conference.

FMCSA Clearinghouse Results

A clearinghouse is an information hub. It is a source that collects and stores information for a set of users. In a project that has taken years to come to fruition, the federal government has is using this structure for the convenience of trucking companies and CDL holders alike.

The FMCSA Drug and Alcohol Clearinghouse is a secure online database that contains records of violations of FMCSA drug and alcohol testing programs. Available information includes:

  • – Positive drug or alcohol test results
  • – Altered drug or alcohol test results
  • – Drug or alcohol test refusals
  • – Return to duty status
  • – Follow up testing plan
  • – SAP process completion date

FMCSA released a report in May of 2020 which relayed the results of DOT positive drug and alcohol tests. According to the report, marijuana usage is the most prevalent among those tested. The prevalence of positive marijuana tests is 3.25x that of the next frequent drug: cocaine.

Hair Follicle Testing

Hair follicles hold drug chemical traces much longer than bodily fluids. Testing hair follicles for drug usage gives you a more widespread picture of whether a candidate has used drugs in recent months.

In the interest of lowering CSA scores and insurance premiums, many trucking companies are making procedural changes. One of which includes switching from the traditional urine drug test to the more accurate and detailed hair follicle test.

A urine drug screen may only return accurate results if a controlled substance was used within the previous 2-3 days. This means that a driver could lay off the marijuana for a couple of days, pass a drug test, and then light up again.

Hair follicle tests, however, have a much longer range. These types of drug screens can accurately report any drug use from the previous 90 days.

A truck driver’s sobriety is not only about their own safety, but the safety of everyone on the roadways, on loading docks, and at the terminal.  Studies show that around 8 percent of truck drivers who pass a urine test would fail a hair follicle test if the specimen was given at the same time.

Federal Marijuana Decriminalization Proposal

On September 21, 2020, the House will be voting on a proposed bill to decriminalize marijuana use on a federal level. If passed, marijuana possession and usage will no longer be classified as a felony.

Trucking industry leaders are highly concerned about this bill. If marijuana is no longer a controlled substance, it will no longer be included in DOT drug panel tests.

Predictions state this bill will pass in the House, which is democrat led. The bill will then move to a Senate vote. It is doubtful that the bill will achieve final approval, as republicans typically vote in opposition to relaxing marijuana laws.

“In the midst of an increase in opioid addiction deaths during the coronavirus pandemic, it seems strange that the focus of House majority leadership would be to fully legalize marijuana, a known gateway drug to opioid addiction,” Rep. Andy Harris, R-Md.

Mandatory Brake Assist and Speed Limiters

Another House bill is calling for mandatory brake assist and speed limiters (governors) on all commercial motor vehicles. The purpose of this bill is to increase safe driving through automation technology that has been on the market for years.

Brake assistance works by equipping the tractor with sensors and software that read the movements of the tractor and make corrections, even before a driver can react. The software can detect if a tractor is approaching a vehicle too quickly and slow the truck to a stop, even if the driver does not engage the brakes.

Entry-Level Driver Training Changes

Trucking schools will soon be required to register with the FMCSA. The accreditation process begins with an application and is basically a compliance review. An accreditation designation ensures that trucking school has been heavily scrutinized by the board. Accreditation includes:

  • Curriculum requirements
  • Compliance with federal, state, and local laws
  • Proper safety procedures
  • Equipment operation

Insurance Coverage Increases

Congress has proposed changes that could be terminally detrimental to some trucking companies. As you all know, we are now required to carry $1 million minimum coverage. The new proposal would require an increase to $2 million.

Industry experts argue, doubling the amount of coverage is excessive. Rising insurance costs have been an issue for years within the industry. These costs have caused some smaller companies to close their doors, solely because they couldn’t afford to keep insurance.

To avoid closure, some trucking companies have resorted to raising their deductible to control the costs of the premium. This practice puts pressure on their fleets to perform to the top of their abilities. Think about how many loads your company would have to haul to make up for a $2 million SIR deductible.

“Insurance coverage, premiums, and renewals are a top industry concern for our carriers. Increasing the minimum to $2 million only compounds the issue.” – Mark Rhea, Trucking Industry Consultant

More about Infinit-I Workforce Solutions

IWS is the trusted learning management system for over 1,300 companies across the nation. Most of our business comes from referrals. New clients typically come to us because another client or partner couldn’t stop talking about Infinit-I.

Current clients who use our mobile safety training have received tremendous benefits. Successfully reducing:

  • – Accidents by 18%
  • – Violations by 80% — WOW!
  • – Training costs by 50%

We are very proud to provide that level of benefit through our service. But our crowning achievement: We save over 1,000 lives each year. This number includes truck drivers, bus drivers, students, and passengers on the road.

We save over 1,000 lives each year.

Currently, we are offering a 30-day complimentary trial of the IWS system. You will receive full access to the entire platform:

  • – The complete training library
  • – Fleetwide communication
  • – Your Own Client Success Representative

 

Every single feature that current Infinit-I clients take advantage of is now yours for 30 days. We have content that addresses the top 10 areas that inspectors will be looking for during International Roadcheck. From Hours of service, to seatbelt usage, to ELDs. We can assign all these and more to your drivers in no time.

Next Week’s Webinar

Next week, we have a big webinar on Hours of Service regulation changes that will take effect at the end of September. We will be speaking with the president of Scopelitis Trucking and Consulting, David Osiecki, to review what the HOS changes mean for your drivers. Click here to sign up, registration is free. See you there!

About the Author

Lindsay Presley is the copywriter at Infinit-I Workforce Solutions. Specializing in the trucking industry, Lindsay has spent her professional career studying industry best practices. From recruiter to dispatcher to fleet manager to trainer, Lindsay knows the in’s and out’s of trucking. 

She brings her experience to the Infinit-I Workforce Solutions blog through years of front-line experience. Throughout her career, she states the most rewarding experience was supporting her favorite truckers, running miles, and moving freight.

Lindsay.Presley@verticalag.com

Additional Information

Safety Managers’ Relief; The Drug and Alcohol Clearinghouse

CSA Score Reduction, How to Challenge FMCSA Crash Rulings

FMCSA is Changing HOS… Again! 4 New HOS Rules.

My Best Friend, the Trucker: How We Transformed the Dispatcher & Driver Relationship

/0 Comments/by
,

Speeding Tickets Jump Drastically during COVID-19

A Speeding ticket is more than just a Fine.

If you asked 100 truck drivers what their dream highway looked like, you would likely get the same answer across the board: Decreased commuter traffic.

Many truck drivers have gotten their wish as commuters have been encouraged to shelter in place and work from home during the coronavirus pandemic. Complying with social distancing rules may have cleared up traffic, but free and open highways give truck drivers little wiggle room.

How does speeding affect your CDL

A moving violation can have a severe impact on your driving record. The consequences vary in severity depending on how often and what kind of ticket you get.

Speed limits are not included in the FMSCA waivers issued in the emergency declarations. Drivers hauling emergency goods will still be assigned CSA points if they are caught speeding.

A truck driver’s safety record is measured by a federal regulatory point system called CSA (Compliance, Safety, Accountability). Infractions are based on a point system; The worse the violation, the more points are given to the driver. A driver that has been issued more violations will have a higher CSA score.

For example, a driver who is given a ticket for 6-10 mph over the speed limit will also receive 4 CSA points. If a driver is caught speeding 11-14 mph over, 7 CSA points will be assigned. And for drivers clocking in at 15+ mph or in a construction zone, 10 points will be tacked on to their CSA score.

Speeding tickets can even affect your license when you are off duty. Multiple citations in a personal vehicle can lead to suspension or revocation of a CDL.

Trucking companies who utilize safety monitoring systems have a duty to reprimand drivers even if no ticket was issued. Reckless driving, even without a citation, means you are putting your life, your career, and the safety of others at risk.

More speeding tickets

Reports in California show that even though traffic volume has decreased 35%, citations for excessive speed have skyrocketed at an alarming rate.

Empty highways created a false sense of security, not only for truck drivers, for four-wheelers too. It seems safer to drive at excessive speeds when there is less congestion.

 “Higher speeds can lead to much more serious injuries and significantly increase the chance of death should a crash occur.” – CHP Commissioner Warren Stanly

With everything a truck driver has to lose, why do they do it?

The Heat is On for Truck Drivers

For most truck drivers, getting paid by the mile means the more you move, the more you make. Drivers who cover more ground in a given week bring home extra money. A per-mile rate of pay is incentive enough for some drivers to put the pedal to the metal.

On top of that, truck drivers build their reputations on whether they can pick up and deliver on time. A driver can plan a trip down with plenty of time to spare, but one traffic jam or work zone can throw the whole thing off-kilter.

The pressure is especially intense during the pandemic. Truck drivers focus on delivering basic needs to consumers as quickly as possible.

For a truck driver, a speeding ticket is not just an inconvenience or a fine. It could mean losing their job or even their license. Multiple traffic violations make it more difficult for truckers to find work.

A clean driving record is a hiring requirement for reputable trucking companies. A driver with heavy boots will be at a disadvantage if they find themselves back in the job market. Keep these things in mind every time you hit the road:

  • – Always comply with traffic laws.
  • – Keep an eye open for speed changes.
  • – Be alert in work zones.
  • – Plan your trips with extra time.
  • – Slow down for curves.
  • – Anticipate downgrades.

As the economy regains equilibrium, so will the roadways. Civilians will begin commuting back and forth to work, to church, shopping, etc. Remember, the rules of the road do not disappear and reappear with the flow of traffic. Always keep your safety and the safety of others on the top of your mind.

 

/0 Comments/by
,

Insurance – COVID-19 impacts Premiums and Renewals

The financial effect of the Coronavirus pandemic has been widespread among the citizens and businesses of the United States. As many people are being temporarily laid off, the economy has taken a swift downturn. Most people are only purchasing essentials.

Many businesses have been forced to close their doors because of the loss of revenue. Some may be closed for good.

Are you covered?

Let’s take a look at how the trucking industry will be affected by insurance costs after the national emergency.

Trucking companies may resort to cutting costs to recover from the economic slowdown we have experienced over the last several months. They must be careful, however, as some cost cutting measures could lead to diminished safety for their drivers. Decreasing staff could mean that drivers will have to run longer hours, leading to frequent driver fatigue.

It will also put more wear and tear on the trucks and trailers. There might even be delays in installing safety technologies like in-cab cameras or online training. These situations bring about increased claim activity.

How does that affect your company?

Insurance companies have to maintain a delicate balance between inflow of premiums and what claims they can afford to pay out. Just like in the trucking industry, if that balance is interrupted, the company has to adapt to stay afloat.

Insurance companies will experience changes in their loss ratio, which means will be paying out more than usual in relation to the premiums they receive. Those covered might see an increase in premiums and renewal costs as insurance companies try to recover from the additional losses.

If the loss ratio changes too drastically, underwriters may begin performing risk assessments on existing clients. They will be very selective about who they choose to take on as insureds. It may be difficult to find coverage for companies with a higher risk for accidents/incidents.

Underwriters are already cautious about making decisions when it comes to premiums, coverage, and renewals. The COVID-19 situation can have a serious effect on their current insurable metrics. Future determining factors are likely to include conditions to coverage based on in-cab cameras, safety culture, and availability of online training.

Responsible carriers will actively manage their risks. Investing in safety is the only way to win. Carriers who cut back on safety efforts to save money are setting themselves up for failure. Insurance providers may have to resort to raising their premiums or charging a higher down payment.

How should you respond?

Communicate your efforts with your current insurance partner. Let them know you have a plan on how to survive during the crisis. Include that you are focused on safety. Even though there are social distancing requirements right now, your safety training cannot be put on hold.

Find ways to adapt to the situation if safety remains a big concern. Technology allows safety training to be delivered directly to your drivers, wherever they are, through an online platform. Your current insurers will keep that in mind when performing your risk assessments.

While it is important for your insurer to be aware of the safety measures you are taking, it is just as important for your drivers. They will enjoy the convenience of taking online orientation, remote training, and monthly training classes from anywhere. And employers can retain their peace of mind knowing they are still focused on safety, even during trying times.

What factors affect a risk assessment?

Risk assessment factors usually fall into these two categories:

  • Tangible – things that are quantifiable such as loss run, miles, commodities, CSA scores, etc.
  • Intangible – things that are difficult to measure like company culture, awareness training, technology usage, security, etc.

What might a loss control professional ask about the intangibles?

Intangibles are difficult to measure. The amount you are charged will be up to your insurer’s discretion. Your best bet is to be prepared and make sure your drivers and employees are up to date on safety training. To give you an idea, here are some questions related to the COVID-19 pandemic they might ask:

  • Did you continue safety training through the pandemic?
  • How did social distancing requirements affect your orientations?
  • How did you lead safety efforts working remotely?
  • How did you help your drivers through this time?
  • How did you manage the waivers issued by the DOT and FMCSA?

Make sure you retain records of everything provided to every driver. The only way to prove that your company has a solid focus on safety is to have documented records. The documentation should be readily available in case you need to show that all drivers are adhering to your policies.

Are we at risk of losing our business due to insurance coverage issues?

Short answer: yes.

There are many examples of trucking companies hanging up their keys because of insurance costs. If premiums increase too drastically, it can become impossible to remain operational. Here are a couple of examples of that happening:

  • Carney Trucking – Insurance premiums doubled for this flatbed carrier. They had to close their doors after 27 years in business.
  • 101 Transport – This Wisconsin based carrier ceased operations after a 70% increase in premiums.

Is there anything I can do to protect my company?

Yes. That’s the good news! As always, be proactive in managing your risk. Your insurance broker needs to see your safety-focused efforts.

Remember that if it isn’t written down, it didn’t happen.

Always keep a record of what training was performed, when it was performed, and make sure your drivers sign everything. For years, “billboard attorneys” have been attacking the trucking industry, encouraging the general public to sue truckers.

And they are ruthless when it comes to safety.

During the pandemic, truckers have been running with relaxed regulations when carrying designated items. If an incident were to occur while a driver is over normal hours, a lawyer might view this as preventative. They could say the driver was negligent and possibly fatigued because he isn’t used to this much road time.

Document everything!

In case of litigation, your best defense is proving your company’s focus on safety. Always be proactive with your safety training and awareness programs. Make sure your drivers are familiar with all your policies (drug/alcohol testing, incident reporting, etc.).

Most importantly, you must be able to prove they have been provided with proper safety training and equipment. Eliminate all reasonable doubt. Carriers need to focus on documenting training and information exchange, especially for upcoming insurance renewals.

Let’s say it again: If it isn’t written down, it didn’t happen.

 

/0 Comments/by

Rising Insurance Premiums for Transportation Firms: What are the Causes?

A driver leans against his truck tire as he takes a break | Rising Insurance Premiums for Transportation Firms

In the last couple of years, insurance premiums for transportation firms have been skyrocketing, and there’s no end in sight. The best trucking companies with the best CSA scores see a 20 to 30 percent increase, while other companies can see a double and even triple increase. Why are we seeing rising insurance premiums for transportation firms and what are the causes?

Causes and Effects of Rising Insurance Premiums for Transporation Firms

Rising insurance premiums for transportation firms can potentially affect the nationwide economy, as costs are passed from insurance companies to trucking companies, and down the line to consumers. A big part of these rising premiums is litigation and the increased frequency of nuclear verdicts.

Nuclear verdicts are settlements for $10 million and up, and 2019 was a record year for them, topping out at nearly $300 million for the record-breaker. With that kind of money going out the door on a regular basis, insurance companies are having a harder time insuring trucking companies. In fact, many insurance providers have completely exited the trucking business altogether. These rising costs impact the insurance companies’ loss ratio, which then results in rising insurance premiums for transportation firms.

How is a loss ratio calculated?

Insurance companies calculate loss ratios to determine profitability. They calculate money lost in claims vs. money paid in premiums to determine their loss ratio. When the ratio gets narrow, premiums increase.

Risk Exposure

By being in the trucking industry, you accept a certain amount of risk. However, every trucking business owner should take an honest inventory of what risks they can actually control, then develop a strategy to address those risks.

Insurance companies are looking for reasons to increase your premium, so you need a tool to help mitigate that risk and demonstrate to your insurance provider that you are insurable and maintain a culture of safety.

With insurance premiums rising so sharply, there is an opportunity to lighten the risk exposure with quality safety training for drivers. Safety programs have been shown to help mitigate the rising costs of insurance premiums and reduce the instance of nuclear verdicts.

Safety First

A high-quality safety program must be accessible for drivers and have flawless, immediate reporting. Driver scores completed modules, and ongoing engagement go a long way toward proving to an insurance company or a courtroom that you have an airtight culture of safety.

Infinit-I Workforce Solutions is a customizable, cloud-based tool that helps you create and enforce your unique safety program. With short, engaging videos, drivers can engage on their phones without impacting drive or rest time. Each module has a quiz, and scores are recorded in real-time. 

In an environment of high risk and low profit margins, you need to do all you can to mitigate rising insurance premiums and litigation. Our safety training solution can help.

What do I need to know now? | Rising Insurance Premiums for Transportation Firms

  • • Insurance premiums for transportation firms are rising rapidly, sometimes doubling or tripling year over year.
  • • Your transportation firm can mitigate rising costs by implementing our customizable training solution.
  • • Documentation could save your company in the courtroom and make you more insurable.
/0 Comments/by

How Reporting Reduces Insurance Costs and Litigation Risk for Transportation Firms

How Reporting Reduces Insurance Costs and Litigation Risk for Transportation Firms

Nuclear verdicts are on the rise, now more than ever. With these verdicts totaling $10 million or more each, this presents a real threat to your business.  In fact, the rise of nuclear verdicts has resulted in many trucking companies going out of business, and many insurance carriers are exiting the trucking industry completely. With insurance costs and litigation risk for transportation firms soaring around every turn, it is more imperative than ever to enforce safety policies and procedures, and have clear documentation.

And while the national inflation rate is about 2 percent, insurance rates are actually increasing by 50 – 100 percent year over year for trucking companies, due to nuclear verdicts. 

What is litigation risk?

Any roadside incident presents the opportunity for litigation. With the appetite for litigation at an all-time high, it is important to train drivers on how to avoid these incidents by using your safety protocols—the more robust your safety program, the smaller the risk for litigation.

Nuclear Verdicts and Their Impact

In October 2019, Country Wide RV Transport (CWRV) was one of the latest trucking companies that fell victim to a nuclear verdict. The second-largest RV and motor-home transportation provider in the country, they employed nearly 600 drivers and contractors, all of whom were informed right before the holidays that they would no longer have jobs. The driver who caused the accident was an independent contractor, but the company was still held liable for damages to the tune of $26.6 million.

In the largest nuclear verdict of 2019, and, in fact, in history, a jury awarded a $280 million verdict in only 45 minutes of deliberation. Was the accident tragic? Absolutely. Was it the truck driver’s fault? Absolutely. Was the verdict inordinately high? Absolutely.

Fatalities are decreasing, yet nuclear verdicts are increasing. 

Each year for the last decade has seen significant increases in litigation resulting in nuclear verdicts, with an extreme uptick in the last two years. Plaintiffs’ lawyers have discovered a gold mine in cases against trucking companies, and you better believe they are hard at work mining every dollar, or in this case, every million that they can possibly get. So while your company is hovering at a 5% profit margin, you’re funding plaintiffs’ lawyers’ fancy vacations. 

You can’t afford it.

Insurance costs are rising rapidly, even for squeaky-clean trucking companies. Insurance providers understand the litigation risks associated with the industry and lose a great deal on nuclear verdicts. Many insurance providers don’t even cover trucking companies anymore due to litigation risk.

What can you do about it? 

With nuclear verdicts and insurance costs on the rise, you can’t afford to take any chances. This is not going away and, in fact, is only getting worse. 

The best leg you can stand on in court is your culture and history of safety, with airtight documentation. Juries, judges, lawyers, and insurance companies become very interested in your culture of safety and history of documentation when a settlement is on the line. 

Learn more about building and maintaining a culture of safety

To get the most out of your safety program and prevent excessive insurance costs and litigation risk, you need a program that is easily accessible to drivers and offers real-time, cloud-based documentation.

Not sure where to start?

Check out our whitepaper on controlling insurance costs, which will help you understand:

  • • What part of your risk exposure you can control
  • • What you can actively do to mitigate your risk exposure
  • • How your company can proactively work to establish a culture of safety that can help reduce accidents, improve defensibility in court, and give access to the best possible insurance rates

Download the Controlling Insurance Costs whitepaper now!

Increase our defensibility in court

/0 Comments/by

Why Documentation is Key to Risk Mitigation

risk mitigation

What are your biggest risks in the trucking business? Apart from road conditions, hazardous freight, and unpredictable passenger vehicles, your biggest risks are financial. How do you make wise choices, mitigate costs, and stay on the black side of your ledger? Discover how the key to risk mitigation is frequent training and documentation.

Read more

/0 Comments/by

8 Ways to Cut Your Insurance Costs

Cut Insurance Costs

An excellent driving record and better driver training for all your drivers means enhanced business, maintaining good relationships with clients, and managing costs. It affects road safety, CSA performance, litigation, and interactions with law enforcement. It’s a pretty simple formula, but one that can make or break your trucking business.

Read more

/0 Comments/by