blog imag32.png

How A Well-Documented Driver Safety Program Can Help Trucking Companies Save On Commercial Insurance.

 

For the last six consecutive years RGL has been awarded Acuity’s Fleet Safety Award for its continued commitment to fostering a culture of safety in the workplace.

Acuity_Award_1.jpgAt RGL, we take pride in our commitment to ensuring all employees are safe at all times. Acuity’s recognition of our trucking division, shows that our employees have bought into this culture and are truly looking out for the safety of themselves, their co-workers, and the motoring public. (See press release for full details)

 

Guest Blogger: Mitchell Sharp is a Marketing Associate with Workers Compensation Shop.com.

Commercial Insurance is one of the largest expenses trucking companies face. Any way a company can go about saving on premium, can contribute immensely to the long-term success of that business. One often overlooked way to go about saving on insurance premium is by having a well-established and well-documented driver safety program in place. Now for a trucking company documentation is usually second nature. Adding some form of a driver safety program to your drivers daily routine can benefit your business in many ways. Here are four ways a safety program can benefit your company when it comes to acquiring, using and renewing commercial insurance.

Better rate on premium

Carriers are more likely to offer you deeper credits and discounts if you have a well-documented safety program in place. It shows that your business operates more like a well-oiled machine and less like a rusty old farm tractor that has been sitting next to the barn for a decade or longer. If you have documentation of this policy your insurance agent can use it to negotiate better coverage, deeper discounts on premium and more credits toward your policy.

Claims tend to be less severe

When there is a well-documented safety program in place your business will experience less accidents and the severity of those accidents will tend to be less severe. If the program has a return to work program as a part of it the injured workers will return to work more quickly. This is extremely important for your insurance policy because the quicker a worker returns to work, even in a limited capacity, the more likely they are to return to work permanently. When injured workers do not return to work and stay on workers’ compensation for extended times, it can negatively impact your experience modification rating. This is the rating underwriters use to determine if they are going to offer you coverage and how much they charge in premium.

Less likely to have rates go up when an incident occurs.

When accidents occur; and in the business of trucking you very well know accidents are eventually going to happen, your rates are less likely to be increased because of just one accident. At the very least your insurance agent can use the program to negotiate on behalf of your company to not have the premium increased. If a program is in place and it is thorough and well documented than the agent can use it to show the underwriter that this incident was a one-time occurrence and not a sign of how you run your business.

Less likely to be dropped from your carrier.

When your business has a policy term in which you have a claim, several claim or a severe claim your business is in danger of being dropped from your provider altogether. This makes it more difficult to find coverage from other providers on the open market. In some instances, the claim effects your experience modifier so much that if makes it impossible for your business to find coverage at all. When this is the case, in most states, your business is forced to purchase insurance from the assigned risk provider. This provider is much more expensive than purchasing coverage on the open market and in most states once a business is forced to purchase coverage from the assigned risk provider it must continue purchasing coverage from this provider for two to four years.

While we mostly agree with Mr. Sharp’s thoughts, RGL doesn’t subscribe to the theory that “ accidents are going to happen”.

Annually, RGL sets aside days for a Safety Blitz Campaign, where all RGL drivers go through a comprehensive safety checklist. This campaign ensures that everything the drivers do is done safely and legally. RGL’s Master Drivers are trained at Fox Valley Technical College, where they learned to identify unsafe habits, skills and behaviors. Through RGL’s detailed education of the rules and regulations, every RGL driver understands what is legal, what is safe, and what is required.

 

 

 

 

Topics: Transportation culture Drivers Safety