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Addressing The Rising Cost of Fleet Management

Four Steps to Take Action Against Accidents and Safeguard Your Drivers and Business

If you are the owner of a fleet of commercial vehicles, you have undoubtedly experienced the increased cost of insuring your fleet. The rising cost of insurance, when coupled with higher fuel costs, wages and vehicle maintenance has many fleet owners struggling to remain profitable.

One of the reasons for the higher premiums is that the average payout for a lawsuit above $1,000,000 involving trucks increased from 2010 to 2018 by 1,000%.

Additionally, medical costs and vehicle replacement values continue to grow, which makes each accident and claim more expensive to settle.

While it can feel like these things are beyond your control, there are some things you can do that will help your business over time:

Safety

Promote fleet safety by having a Fleet Safety Program. A well-documented safety program is an essential defense if a driver has an accident. Demonstrating that your company puts safety first is attractive to insurance underwriters.

Fraud Prevention

Document your drivers’ commitment to conform to company policies in order to reduce probability of staged accidents.

Technology

Use of telematics. Insurance companies encourage the use of telematics as it is a demonstrated way to promote safe driving. Speed governors, lane departure warnings and other features help prevent crashes. Dashcams capture risky events so you can minimize risk and better coach your drivers.

Alternative Risk Financing

Established companies with excellent loss history may be eligible for a Captive Insurance model. It isn’t for everyone, but it can be an excellent choice for those who qualify.

A safety culture begins at the top and the more you can emphasize it in your organization, the more likely it will entrench itself. Not all accidents can be prevented but when the proper risk controls are put in place it is more likely to decrease your claims experience which results in lower insurance premiums.

A quality insurance agent will not only know the best insurance carrier for your type of business, but they will also have the resources available to help you set up and/or assess your current fleet safety program.

Ready to pinpoint your exposures, mitigate risk and minimize losses for your business? Connect with a OneDigital Property & Casualty consultant.

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