Accident prevention key to cutting insurance costs

Nov. 1, 2004
Bill Robertson lays it out pretty bluntly for fleets: If an accident costs you $25,000 and your profit margin is only 2%, then your operation has to generate an additional $1.25 million in revenue to pay for the losses. Accident prevention is critical to fleets, both in terms of reducing their overall cost of operations and their insurance costs, said Robertson, a risk management consultant for Alabama-based

Bill Robertson lays it out pretty bluntly for fleets: If an accident costs you $25,000 and your profit margin is only 2%, then your operation has to generate an additional $1.25 million in revenue to pay for the losses.

“Accident prevention is critical to fleets, both in terms of reducing their overall cost of operations and their insurance costs,” said Robertson, a risk management consultant for Alabama-based Barksdale Bonding & Insurance. Robertson spoke at McLeod Software's 14th annual User's Conference earlier this fall.

Robertson suggested that fleets consider the following: develop policies and procedures regarding accidents; pay more attention to the driver hiring process; refocus efforts on driver training; and ensure that upper management fully supports the accident policies.

“From my experience, rewarding drivers for accident-free performance can be a powerful motivator,” Robertson said.

About the Author

Sean Kilcarr | Editor in Chief

Sean reports and comments on trends affecting the many different strata of the trucking industry -- light and medium duty fleets up through over-the-road truckload, less-than-truckload, and private fleet operations Also be sure to visit Sean's blog Trucks at Work where he offers analysis on a variety of different topics inside the trucking industry.

Sponsored Recommendations

Tackling the Tech Shortage: Lessons in Recruiting Talent and Reducing Turnover

Discover innovative strategies for recruiting and retaining tech talent in the trucking industry at our April 16th webinar, where experts will share insights on competitive pay...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

How Electric Vehicles Help You Prolong the Life of Your Fleet

Before adopting electric vehicles for commercial/government fleets, prioritize cost inquiries. Maintenance is essential; understand the upkeep of EV fleets. Here’s what you need...

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!