Reducing claims and claim costs requires minimizing accidents and improving construction companies’ standing with insurance companies. There are four key strategies to doing this in 2020.
1. Develop a formal fleet safety program, complete with training.
This program should include hiring qualifications for drivers, a formal drug and alcohol program, regular maintenance inspection criteria, accident reporting rules, a detailed load securement policy, disciplinary actions for accidents, aggressive driving and, most importantly, driver selection and enforcement. Even if a company only employs a few drivers, defensive driver training and load securement training is critical to reducing accidents and violations. This training should be offered upon hire, annually and post-incident.
2. Institute MVR monitoring.
At a minimum, companies should hire drivers who have an acceptable motor vehicle record (MVR). MVR monitoring should be conducted at onboarding and annually, if not monthly, via an MVR monitoring service. MVR monitoring services will notify businesses of any change in drivers’ MVR status—whether a downgrade or removal of an MVR inhibitor. About a dozen states, including Illinois, New York and California, currently offer MVR monitoring. Third-party MVR monitoring is also available when businesses need to supervise their fleet’s MVRs across state lines.
3. Know when drivers need a CDL.
State-specific licensing nuances may require a specialized license, beyond a Class A CDL. Companies should be aware of the requirements of each state in which they have operational drivers. In addition, drivers should be appropriately licensed for the truck and trailer’s combined weight rating. When a driver gets pulled over and does not have the appropriate license, the vehicle could be impounded. When there is a fatality or serious injury and the company driver is not licensed to operate the vehicle, claim costs can exceed policy limits.
4. Employ driver monitoring technology.
Studies show that drivers who know they are being monitored via in-cab telematics are more careful on the road. As crash claims increase, more insurance carriers are requiring in-cab telematics or providing favorable pricing for construction companies that implement those types of services.
