There’s no question that life on the road for a commercial truck driver is a risky one. While the National Highway Traffic Safety Administration’s (NHTSA) 2018 highway crash fatality data showed a 2.4% decline in overall fatalities, the number of fatal crashes involving large trucks increased by 0.9%. FleetOwner spoke to Dave Nelson, second vice president, commercial accounts group and Chris Hayes, second vice president of transportation, risk control from Travelers Insurance on how best to stay protected on the road.
FleetOwner: What types of products and services, as it relates to insurance, are offered by Travelers?
Dave Nelson: We offer a wide range of insurance options for businesses designed to identify and reduce risks companies face every day. This includes property, workers compensation, general liability, cyber and commercial auto for many industries including transportation.
Along with our broad coverage offering, we continue to focus on understanding the environment and providing the tools and resources for our customers and agents that can help them understand, manage and mitigate their commercial auto risks. This includes leveraging findings from our public policy division, the Travelers Institute, on distracted driving, its causes and tips for avoiding distractions behind the wheel.
FO: What type of coverage is recommended for fleets?
DN: A comprehensive commercial auto policy is critical for fleets. Our commercial automobile policy can provide liability and physical damage coverage for both small and large fleets of commercially owned vehicles.
When purchasing insurance, you’ll want to consider physical damage coverage to protect the investment in your fleet. If you’re transporting goods, look at motor truck cargo legal liability, which provides coverage if those goods are damaged in transit.
It’s also important to think beyond minimum liability requirements for financial responsibility in case of a crash. Depending on the severity, the costs could be significant. Increasing your umbrella insurance limits can help address that risk.
Depending on the size of the fleet, there may also be a physical structure, like a terminal, to protect, so traditional property coverages and general liability would be key.
Additionally, if you have any employees, you’ll need workers compensation insurance.
FO: How have insurance companies been providing support and flexibility for fleets due to the impact of COVID-19?
DN: At Travelers, we have been working with our business customers and their agents and brokers to address specific needs based on underwriting and state regulatory requirements, including:
- Providing premium credits for commercial auto policyholders whose vehicles have been taken off the road.
- Adjusting exposures for general liability and workers compensation policies, taking into account reduced payroll, sales and receipts.
FO: How does the driver shortage impact a fleet’s insurance policy and/or rates?
DN: A shortage of commercial operators has led to a higher rate of drivers switching companies and increases the chance that less experienced drivers are behind the wheel. Operators in new vehicles covering unfamiliar routes can also contribute to an increase in accident rates. Formal onboarding and training of drivers can play a critical role in helping to reduce the likelihood of an accident while also contributing to employee retention.
FO: How can fleets work to control and/or lower insurance rates?
DN: Implementing effective risk mitigation techniques can help reduce the risk of losses over time, which is part of the consideration of the overall insurance program. More importantly, risk mitigation helps prevent losses from happening, which is valuable to a customer because both the direct and indirect costs can be significant.
FO: What tips would you give drivers and fleets to promote proper safety on the road?
Chris Hayes: A formal fleet safety program can help establish the policies and procedures that are needed to create a safe work environment for employees and help protect against vehicle crashes. It is important that the program is comprehensive, up-to-date and clearly communicated across the company.
If you use technology, like telematics devices, to help manage your fleet, be sure to use the resulting safety information to coach drivers and provide meaningful feedback. Keep in mind that positively reinforcing safe driving behaviors can motivate employees to stay safe on the job.
For drivers, along with following all company policies and procedures, it’s important to be alert for changing road conditions and to take precautions to minimize distractions. In addition, properly maintaining vehicles can help protect against maintenance related accidents.
FO: What recommendations would you give to fleets who are looking to hire safe drivers?
CH: When you’re looking to hire safe drivers, we recommend following these tips:
- Follow consistent hiring and qualification standards for new and current drivers.
- Use tools like FMCSA’s pre-employment screening process (PSP) and motor vehicle reports (MVR) to review safety records.
- Conduct background checks; review past work history as well as verify licenses and certifications.
- Road test all new drivers.
- Adhere to applicable commercial vehicle driver qualification rules.
