Benefit of Risk Control Practices on Business Auto and Commercial Fleet Coverages
2020 was a year of change. For most of us, change was one of the few consistent elements we experienced throughout the year.
Among the changes we encountered in our industry in 2020 was an increasing focus on business auto and commercial fleet insurance coverages from the insurance market.
As insurance carriers continue to encounter a rising cost of claims, we see an increasing cost of coverages. Insurance carriers are becoming more scrutinizing of the risk they are willing to take when renewing or accepting new policies.
What does this mean to you and your business? Businesses that emphasize risk control practices are those seeing the least amount of cost impact at renewal. In addition to using written programs for risk control, companies must be actively managing essential programs that include:
- Formal fleet and driver requirements – Written programs that are routinely reviewed and updated
- Prequalification of drivers – Strict enforcement of MVR requirements and driver behaviors
- Periodic review of drivers – Annual (or more frequent) MVR reviews and reviews of driver files and other related information
- Active monitoring and correcting driver behaviors – Telematics/GPS/ELDs
- Driver awareness – Training of drivers to meet expectations and reduce distracted driving
- Driver accountability – Driver acknowledgement of rules and company expectations
- Advancing in nature – Adjusting behaviors and/or driving privileges as required
For more information on how you can improve your risk control practices, please don’t hesitate to contact us.
