A Summary of 3 More Insurance Saving Tips

72. Audit Readiness: Are You REALLY Audit-Ready?
73. Start a Driver Safety INDOC Program
74. Follow or Fail: Why You Need to Adhere to Your Own Standards

Here is a summary of several more insurance saving tips.

Insurance Saving Tip #72.

Audit Readiness: Are You REALLY Audit-Ready?

  • An audit readiness assessment or self-audit is a means to check your current status and has many benefits as it can point out areas of improvements, resulting in a safer work environment, improved reputation, increased peace of mind, and a more profitable business.
  • Step 1. Obtain top management support
  • Step 2. Create an self-audit checklist
  • Step 3. Initially focus on your files and paperwork
  • Step 4. Review your general safety
  • Step 5. Review your preventative maintenance (PM)
  • Step 6. Review your safety monitoring programs
  • Step 7. Document your self-audit and create an improvement plan

Insurance Saving Tip #73.

Start a Driver Safety INDOC Program

  • “A direct correlation exists between a sound indoctrination procedure and the factors which contribute to better performance and increased retention.” U.S. Navy, Office of the Chief of Naval Operations Instruction
  • “You as a motor carrier have to prepare your drivers and enable them to prevent collisions caused by the mistakes that others make and that’s why we we’ve been a staunch advocate for defensive driving here.” Brett Sant Senior VP Safety, Knight-Swift.
  • A driver safety INDOC program can better prepare drivers and operators for both on-the-job success and help to meld them for a longer tenure at your company.

Insurance Saving Tip #74.

Follow or Fail: Why You Need to Adhere to Your Own Standards

A single “fender bender” type collision later resulted in a very large jury verdict, over $100 Million.

  • If your company does adopt high standards and exemplary work rules and policies (and it should), be sure to always adhere to them.
  • If there are exceptions to an internal rule, policy, or standard, then make sure an authorized person documents the reasons the policy or standard was not followed in that instance. This rule was also not followed in the previous case.
  • Again, on an everyday basis, without exception, be sure to dot all the i’s and cross all the t’s in all your paperwork and processes. Periodically conduct a thorough audit readiness assessment (self-audit) of how well policies are followed and enforced. ■

5 More Great Best Insurance Practices for Better Premiums

More Great Best Insurance Practices

#65 Danger on the Tracks! What can be done to avoid collisions with trains?
#66 Avoiding the “Hazmat Placardable Inspection” Trap
#67 Motivating Safer Drivers
#68 Create a Positive Safety Culture
#69 Deploy Driver Safety Scorecards

2021 Insurance Saving Tip #65

Danger on the Tracks! What can be done to avoid collisions with trains?

Train tracks are often hidden dangers. In some areas of the country, few tracks can be found, so drivers in those areas are not accustomed to highway-grade crossings. In other part of North America, it is impossible not to cross multiple crossings, and crossings become so ubiquitous they seem to be invisible.

The NHTSA classifies truck-train collisions as some of the most dangerous crashes for truck drivers.

“The primary crash types in terms of severe injury probability to truck drivers is the same as for all trucks. The most dangerous crashes are rollover (12.2%), collision with a train (9.5%), fire (6.3%), and collision with a hard fixed object (4.2%).”
—NHTSA Report: Heavy Truck Crashworthiness: Injury Mechanisms and Countermeasures to Improve Occupant Safety (2015)

☠️ Rail Crossing Safety Stats:

  • One person every 100 minutes—Each year nearly 1,000 people are fatally injured in train collisions.
  • Many more people are injured, some seriously.
  • Nine tractor-trailers a week collide with trains, some hauling hazmat.
  • 80 percent of crossings lack adequate warning devices such as lights and gates.

In addition to the hazards of “highway-grade” crossings, CDL and CLP drivers can face a mandatory license suspension (See Table below) whether or not a train is present for:

  • Not slowing down and checking if the tracks are clear
  • Not stopping, if the tracks are not clear
  • Not stopping, if always required to stop
  • Not leaving sufficient space to drive completely through
  • Failing to obey a traffic control device or the directions of a LEO
  • Failing to negotiate a crossing due to insufficient undercarriage clearance

Table 3 to 49 CFR §383.51: Disqualification for railroad-highway grade crossing offenses

Conviction First Conviction Second Conviction Third Conviction
Fails to slow down & check tracks . . . 60 Days Suspension 12 Days Suspension One Year
Fails to stop, if not clear . . . 60 Days Suspension 12 Days Suspension One Year
Fails to stop, when required . . . 60 Days Suspension 12 Days Suspension One Year
Fails to have sufficient space to drive completely through . . . 60 Days Suspension 12 Days Suspension One Year
Fails to obey a traffic control device or the directions of a LEO 60 Days Suspension 12 Days Suspension One Year
Insufficient undercarriage clearance 60 Days Suspension 12 Days Suspension One Year

What to do?

  • From time-to-time, review proper railway crossing procedures with drivers and operators for approaching, negotiating, and dealing with crossings and multiple-track crossings.
  • Encourage drivers to avoid routes that go over highway-rail crossings.
  • There’s no such thing as “unused tracks.” Assume all crossings are active.
  • Freight trains do not follow a schedule.

Operation Lifesaver (oli.org) provides no-cost rail crossing-safety resources:

  • Safety information
  • Media, including posters
  • Speakers for safety meetings

2021 Insurance Saving Tip #66

Avoiding the “Hazmat Placardable Inspection” Trap

Inadvertently hauling Hazmat can trigger:

  • Tighter Hazmat BASIC percentages and subsequent alerts . . .
  • In turn leading to a DOT Audit or other DOT interventions and higher insurance for several years.

Why should Hazmat be a concern to a non-Hazmat hauler?

  • Excluding bulk shipments (single containers exceeding 119 gallons for liquids, 882 pounds for solids, and 1,000 pounds for gases), about 94 percent of individual Hazmat shipments are transported by truck. For example, many common consumer goods as adhesives, batteries, cleaning solutions, paints, and swimming pool chemicals are considered hazmat.
  • Size of the vehicle does not exempt a hauler from the hazmat rules. The rules apply to ANY vehicle transporting HM in a quantity requiring the display of a HM placard
  • Hauling intrastate or locally is not an exemption from the hazmat rules.

Hazmat is complex.

“The Hazardous Materials Table in the regulations contains a list of these items. However, this list is not all-inclusive. Whether or not a material is considered hazardous is based on its characteristics and the shipper’s decision on whether or not the material meets a definition of a hazardous material in the regulations.” CDL Manual, Chap. 9 Hazardous Materials

How can hauling Hazmat lead to a DOT Audit or other intervention?

  • To fully understand this question, first one needs to be aware of the criteria for DOT Audits. The DOT is data driven, gathering information from Roadside Inspections and crash data that filters into its Safety Measurement System (SMS) and into seven BASIC (Behavior Analysis and Safety Improvement Category).
  • If the BASICs exceed a certain percentile threshold, or the carrier has had an Acute and/or Critical Violation in the last year, then the BASIC can go into an “Alert” status.

Here’s the trap: Hazmat thresholds (See chart below) will apply to a motor carriers if:

  • If they had two HM inspections in the last two years (one within 12 months), and
  • Hazmat inspections are 5% of all inspections (SMS Methodology)
BASIC Passenger HAZMAT All Others
Unsafe Driving



50 60 65
Driver Fitness


Veh. Maint.

65 75 80
Hazmat 80 80 80

Your company may have acceptable BASICs, (between the Hazmat and All Other categories), that are under the Alert thresholds, but even though it is not a hazmat hauler, find itself held to a higher “Hazmat” standard by being cited for hauling Hazmat, twice in the last two years (incl. once in the last 12 months), with the Hazmat inspections being over 5% of your total inspections.

This in turn, could result in a DOT Audit or intervention.

If your BASICs are in an Alert status, this is not viewed favorably by most insurance companies.

What to do?

  • If you are not a Hazmat hauler, there is no requirement to train your drivers and operators on Hazmat, on what they can and cannot haul, but it is a good best practice to do so anyway.
  • Mechanics, technicians and parts runners also need Hazmat awareness training, as well. They need to know how to transmit and store Hazmat. For example, throwing a case of starting fuel on the front seat of a pickup or service truck with a DOT Number, could result in a citation for improperly secured Hazmat (177.834A). Support personnel need to know the difference between Hazmat and any Materials of Trade (MOT) they might carry.
  • Don’t rely on shippers or anyone in the supply chain to screen their loads for placardable quantities. Even the best can make an occasional mistake.
  • Don’t rely on luck. Once could be an honest mistake. Twice is a pattern, as far as the DOT is concerned.
  • Set a higher standard for all of your BASICs. Keep them well below the Alert thresholds.


  • Several Hazmat inspections can result in being held to a higher DOT standard for audits and interventions.
  • Train your drivers and operators on Hazmat Awareness.
  • Train mechanics, technicians and parts runners, as well.
  • Set a higher standard for all of your BASICs.

2021 Insurance Saving Tip #67

Motivating Safer Drivers

  • We usually associate workforce motivation with what is known as extrinsic incentives, such as pay, benefits, bonuses and the like.
  • But the fact is, research show these type of motivators are on the bottom of the list, if you want people to go the extra mile.
  • The key to workforce motivation is found in balancing the extrinsic rewards with intrinsic rewards, such as more autonomy, account-ability, responsibility and challenging work.
  • But first, it is necessary to understand the different factors in work satisfaction and dissatisfaction. They are not directly related!
  • Most drivers and operators, with five or more years of experience have a high level of job satisfaction when it comes to the work.
  • But they can also be, at the same time, dis-satisfied with a job due to things as a weak company culture, rudeness, and a lack of camaraderie (mutual trust), leading to an exit from a position.
  • This ‘two factor’ theory of motivation was proposed by Frederick Herzberg.
  • Key Idea: Increasing job satisfaction may not lead to a decrease in job dissatisfaction.
  • Attention needs to be paid by management to both the things that increase satisfaction and the things that decrease dissatisfaction. This is a two-step process.

Decreased dissatisfaction comes from: better policies, a strong company culture and safety culture, effective supervision, and the like.

  • An example of improving the company culture might be adopting the “Golden Rule” as a core company value . . . Treat all customers, co-workers, and others as we would expect them to deal with us.
  • Another example, based on research, is to monitor dispatcher speech for rudeness and swearing directed at drivers.

“When dispatchers swear and are rude with drivers, it distracts them and impairs objective indices of their safety.” —Dr. Tim Judge

Increased satisfaction (motivating factors, or satisfiers) can arise from: recognition, more responsibility, training and development, more accountability, and so on.

  • An example would be ongoing engagement with drivers, as listening to their issues, or granting reasonable requests for time off.

Other motivational tips:

  • Hire more for attitude over experience
  • Fill managerial/supervisorial jobs from within
  • Don’t try to educate managers or supervisors; change their jobs. (Herzberg)
  • Put a strong emphasis on employees’ leaving comments. What is driving turnover?
  • Build a positive, more collaborative culture
  • Create a “Culture Book” or company culture video for new hires with everyone’s ideas in their own words about: What is our culture? What makes it unique? What do you like about it? —without talking to any others about what you or they write.
  • Encourage peer-to-peer recognition.

2021 Insurance Saving Tip #68

Create a Positive Safety Culture

  • A company’s culture reflects the attitudes and beliefs that underlie how things “really get done.”

“We want to focus on the ways that we’re different from everybody else. Well, actually, when we look at our behavior, we’re more similar than we might realize.” Jonah Berger, Ph.D., “Invisible Influence: The Hidden Forces That Shape Behavior

One way to think of a company’s safety culture is in relation to the emphasis put on the value of safety in every decision made by every individual in the company. It’s an invisible force that influences behavior.

“Safety culture is best defined and indexed by an organization’s norms, attitudes, values, and beliefs regarding safety.” TRC Synthesis 14The Role of Safety Culture in Preventing Commercial Motor Vehicle Crashes

A positive safety culture makes safety a shared responsibility.

“Everyone feels responsible for safety and pursues it on a daily basis.”  E. Scott Geller, Safety Evangelist

Why is a positive safety culture important?

Organizations with a positive safety culture have (among others):

  • Higher productivity and less turnover
  • Fewer compliance issues
  • Greater profitability in upturns;
  • More resilience in crisis situations and cyclical business downturns

How can you instill a positive safety culture in your organization?

  • Start by being more mindful about the language being used to describe safety events and what they mean.
  • For example, many companies have replaced the term “accident,” implying an event was out of anyone’s control, with the term “collision” or sometimes “crash.”

“About 94 percent of serious crashes are due in part to frequent and predictable driver errors, such as speeding, or driving while impaired or distracted.” (National Safety Council, The Road to Zero)

Other words to watch are “close calls” or “near-misses,” according to safety consultant Mark Paradies. They really are an indicator of more serious future safety events. A better term is precursor, implying something will likely happen, if nothing more is done.

Adopt what is proven to work through evidence-based strategies:

  • Management sets the tone for safety
  • Define safety and set measurable safety goals and milestones
  • Follow industry best practices (like this one you are now reading), found in the TRC Synthesis Reports, industry magazines, trade associations, conferences, etc.
  • Keep up with and deploy new fleet safety technology. Become an early adopter, to the extent possible
  • Evolve your safety programs and makes changes as needed
  • Foster a sense of shared responsibility and engagement
  • Focus on behaviors and behavior-based safety.

2021 Insurance Saving Tip #69

Deploy Driver Safety Scorecards

What are driver safety scorecards?

  • Driver safety scorecards, usually based off an onboard vehicle safety platform, are a tool to identify risky driver behaviors and aid in driver coaching and training.
  • As a bonus, many insurance companies look favorably on fleets keeping driver scorecards to assess and improve driver behavior.

Using onboard platforms, ELDs, cameras, or vehicle telematics, drivers can be monitored for risky behaviors (among others) as:

  • Following too closely
  • Hard braking (reducing speed by 8-10 MPH in 1 second)
  • Speeding, excessive speeding, hard accelerations
  • Hours-of-service violations, even seat belt use.

Benefits of driver scorecards include:

  • A reduction in risky driving behaviors
  • Opportunities to coach and train drivers
  • A reduction in high-risk drivers and lower crash rates
  • More efficient and productive use of the vehicle

Driver Scorecard Tips:

  • Obtain buy-in from top management and the drivers
  • Get your policy right first, before deploying the technology
  • Shape your policy to fit your drivers and operations
  • Over-communicate with drivers before and during deployment
  • Some companies post monthly the names of top and bottom ranked drivers.
  • Some companies also track driver CSA points on their driver scorecards.
  • Some companies have a designated driver coach to take calls from drivers who want to improve.

Financial Scorecard & Cost Implications:

  • Depending on the onboard systems already installed, initial costs may be low to moderate, with a good return-on-investment (ROI).
  • Improving driver safety performance and lowering crash rates will improve your insurance risk profile and can help stabilize premiums.

Check with your agent or broker if any Driver Safety Scorecards discounts are available.

Representative Platforms (among many others)

Thank you for reading this. ■

5 More of the Best Insurance Practices Leading to Lower Truck Insurance Premiums

More Best Insurance Practices:

#60 Elevate Your Company’s Safety Ethos
#61 Review your Driver/Operator Manuals for Compliance and Accuracy
#62 Institute a Written Safety Incentive Program?
#63 Don’t Forget the Basics . . .
#64 Lagging vs Leading Indicators: Are you measuring Success or Failure?

2021 Insurance Saving Tip #60

Elevate Your Company’s Safety Ethos

What is Safety Ethos?
Why is our company’s safety ethos important?
How can we elevate our safety ethos?

Ethos is defined by Merriam-Webster.com dictionary as “the distinguishing character, sentiment, moral nature, or guiding beliefs of a person, group, or institution.”

⦁ Webster’s goes on to say, “Ethos means “custom” or “character” in Greek. Today ethos is used to refer to the practices or values that distinguish one person, organization, or society from others.”

⦁ “Formal : the guiding beliefs of a person, group, or organization.”

⦁ Your company or organization has an ethos. Call it street cred, public perception, reputation, or whatever.

⦁ Your ethos, essentially, is based on what employees, customers, suppliers, partners, and others believe about your organization and who you really are all about.

⦁ Why should we care about our safety ethos?

Inaccurate, but public, social media reviews might form part of that ethos.
Here are some online reviews of one company:
“Nothing but liars.”
“The company is trash.”
“Terrible people to work for.”

Publicly available government compliance reporting can form part of that ethos.
Typical sites can include:

You want your company to be the best. The employer of choice. The supplier of choice.

But mistakes can occur . . . even to the best. In the event of litigation, the facts may well be in your favor, but many times the outcome is determined by what a jury believes they “know” about your company and how you do business. Your ethos.

Based on a jury’s perception of your ethos, there may be an effort made by the plaintiff’s attorney to extract not only damages, but also punitive damages . . . damages not covered by insurance.

“The best defense is an offense.” George Washington

The same is true of your safety ethos.

A strong organizational ethos will result in attracting the customers you want to serve, and the employees and suppliers you want to work with.

And while your insurance company has a duty and obligation to defend you in court, there is only so much it can do, if you have not done the right spadework to shape and guard your ethos.

How can we elevate our safety ethos?

Some actions leading down the path to a better safety ethos include:
⦁ Become a more people-centered organization. Put people first in whatever you do. Don’t play the name, shame, and blame game.

⦁ Become more proactive in safety initiatives

⦁ Adopt more forward-looking safety metrics. For example, our previous best practice (#59) was about encouraging your workforce to make their safety concerns and suggestions known. These can be, for example, tracked and compared against safety warnings. The goal would be to have more safety concerns and suggestions made known than safety warnings made.

⦁ Network more: build a caring community. Get more involved.

⦁ Adopt a safety-ethos mindset. Simply being more mindful of the big picture can be a big step towards a better safety ethos and company ethos

2021 Insurance Saving Tip #61

Review your Driver/Operator Manuals for Compliance and Accuracy

⦁ Your Driver/Operator Manuals can become an effective communication tool for both the company and workforce.
⦁ But any good tool, to remain effective, needs occasional maintenance and even updating.
⦁ Some insurance companies will ask for your Driver/Operator Manuals as part of the loss-control review.
⦁ It’s best to consider your Driver/Operator Manuals as legal documents, that may be cited in future hearings or even litigation.

General Driver/Operator Manual construction:
⦁ Any written document needs to be both accessible and readable. That could mean, in the case of your employee manuals, having both electronic and hard copies available, a table of contents and a simple index.

⦁ In this age of rapid changes, the ability to make revisions when needed is important. Having a master document template, which is revised as needed, can be helpful.

⦁ Keep it at a “brain-friendly” level of communication. (See Tip 53)

⦁ For example, Brian Fielkow, a Safety Evangelist and CEO of Jetco Delivery, recommends having your employees help write the manual for better readability and understandability. He put representative members of his organization in a room with a writer to produce his manual.

⦁ Having frontline employees help make and write the rules under which they will work, is an example of taking advantage of the “commitment effect.” Fielkow is proud of his much lower-than-industry-average driver turnover at his trucking company.

Specific areas to cover in your driver manual might include (among others):
⦁ Be sure to have a general safety policy, stating the expectation that all employees will work in a safe manner, follow all safety standards and all local, state and federal rules and regulations, signed by management.

⦁ Laws and court holdings are frequently revised saying who can be an independent contractor (I/C) or owner-operator (O/O). If your enterprise employs I/Cs or O/Os, it would be prudent to make that distinction by having a separate manual for your driver/operator employers and another manual for your I/Cs or O/Os.

⦁ Have a section on how employee concerns about safety issues can be communicated to supervisors and management, and how these concerns will be followed up.

On a side note, OSHA oversees driver Whistleblower Protection. Not acknowledging driver or operator safety concerns or terminating a driver for refusing to drive a vehicle believed to have safety issues, can result in steep OSHA fines and the payment of back pay for any time off. Become familiar with these OSHA provisions.

⦁ Finally, from time to time, be sure to have a transportation attorney review your Driver/Operator Manuals. It is challenging for anyone in business these days, without good outside help, to keep up with the array of changes in laws, rules and regulations that govern the workplace, and what should or should not be included in any employee handbooks or manuals.

Periodic legal reviews will help to keep your manuals from later being used against you. They can continue to be an asset to the organization, not a potential costly liability.


1.) Brian Fielkow

2.) Kaitlin Gibson, VP Underwriting of fintech truck insurer Cover Whale Insurance Solutions Inc., put together a short guideline of some things they would expect in any driver manual.

2021 Insurance Saving Tip #62

Institute a Written Safety Incentive Program?

⦁ Why have a Written Safety Incentive Program?
⦁ What doesn’t work well in safety incentives?
⦁ What questions should be asked in setting up a safety incentive program?
⦁ Final Considerations

⦁ Some economists say many shortages can be traced to government interventions in the marketplace. A real shortage has occurred in the hiring of both drivers and mechanics. And with current national policies, it’s not getting any better.

⦁ Data shows driver apps have fallen about 15% from a year ago, according to Recruiting Consultant Marilyn Surber of Tenstreet.com. Surber recommends all companies need to adjust to this new reality by closely looking at the benefits they offer and differentiating themselves by strong safety protocols. Sound advice. One component might be a written safety incentive program.

What doesn’t work well in safety incentives?
⦁ Most important of all, a written safety incentive program is not a stand-alone safety program in of itself. Incentive programs should be a part of your overall formal safety program—not a proxy.
⦁ Secondly, choose incentives carefully so they are motivating, not demotivating. Motivating type incentives may vary, as people are different.
So, what doesn’t work well?

Some incentives to avoid might include:
⦁ Incentives which will result in a decrease of reporting (lagging indicators) of incidents or accidents.
⦁ Pooling the “safe employees” for an annual grand prize drawing (like a motorcycle), which results in only one or a few winners.
⦁ Deducting amounts for performance from a pre-set cash incentive.
⦁ Deducting “points” which can be earned back, as employees may feel they cannot control when or how things occur.

Some incentives to avoid might include:
⦁ Incentives which will result in a decrease of reporting (lagging indicators) of incidents or accidents.
⦁ Pooling the “safe employees” for an annual grand prize drawing (like a motorcycle), which results in only one or a few winners.
⦁ Deducting amounts for performance from a pre-set cash incentive.
⦁ Deducting “points” which can be earned back, as employees may feel they cannot control when or how things occur.

Common questions in setting up a safety incentive program:
⦁ What are your goals and expectations?
⦁ Will it help raise awareness of safety issues?
⦁ Will it reinforce your formal safety program?
⦁ Will it improve safety by reducing losses?
⦁ Who will be eligible for the safety incentives?
⦁ Will the incentives be tied to a driver scorecard or onboard driver performance monitoring platforms? Will clean Roadside Inspections be included?

What type of incentives will you offer?
⦁ Certificates or letters of achievement (Monthly, quarterly, annually?)
⦁ Gift cards or cash bonuses
⦁ Wall Plaques
⦁ Paid time off
⦁ Company apparel, etc.

Who will be the program coordinator, to monitor and gauge the effectiveness (outcomes) of the program?

How will management show recognition for those who have earned the incentives?
⦁ Meetings
⦁ Bulletin Board
⦁ Newsletters / Direct communication

How will management kick-off and build up excitement for the program?1

How will employees know where they stand, at any given time?

Some final considerations in offering safety incentives:
⦁ Tilt the scales more toward the receiving of recognition in meeting expectations and goals, rather than in getting tangible things.
⦁ Top management involvement is crucial, from the get-go.
⦁ Keep drivers and operators, mechanics, etc., involved in the process, too.
⦁ Carefully consider the program’s goals, metrics, and incentives.

Perhaps run a pilot program with a control group and measure the results.

Safety behaviors to be awarded should include:
⦁ Attending safety training
⦁ Making safety suggestions
⦁ Completing vehicle inspections and pre-operational checks
⦁ Participation in driver and/or safety committees

Finally, don’t feel pressured by your insurance company or safety consultant to start a safety incentive program.
⦁ ROI of incentive programs can be low: In some situations, costs may outweigh the benefits
⦁ A strong commitment to safety, involving employees in the safety process—allowing them to set safety goals—and having a high set of safety standards may result in better outcomes, with or without a safety incentive program according to some safety experts.
If your insurance company makes this suggestion, be sure to ask them for a proven working model to follow.

2021 Insurance Saving Tip #63

Don’t Forget the Basics . . .

 “Common things happen commonly.” —Anon.


⦁ We will look at three examples, all involving violation of basic safety rules, all resulting in severe safety events . . .

Example 1: A supervisor told the driver to leave the keys in the tractor. It was then stolen from the lot where it was parked. The thief drove it erratically before striking a family car, and seriously injuring a child. The tractor was abandoned, and the suspect remains at large.
Basic Rule violated: Always remove the key from the ignition and secure the vehicle.
Settlement Amount: $7 million

Example 2: A forklift entered a trailer, resulting in a forward movement of the tractor-trailer. The forklift dropped four feet to the ground injuring and incapacitating the driver.
Rule violated: Always set the brakes and chock the wheels when docking.
Settlement Amount: $4,825,000

Example 3: A driver of a tractor trailer was operating a tractor trailer on cruise-control at 58 MPH when the unit lost control, slid on ice, resulting in a jackknife blocking the left lane and part of the right lane. The driver left the vehicle but did not activate the emergency flashers or set out reflective triangles. In the ensuing pileup, four people were fatally injured, and multiple vehicles destroyed.
Rules violated: Using cruise-control in slippery conditions; Not activating warning devices to warn other motorists of the vehicle across the lanes.
Settlement Amount: $16.5 Million

⦁ In these three examples, violations of simple, basic, fundamental safety rules resulted in severe injuries, death and destruction.

⦁ In these examples, the vehicles were not in motion, when the driver error(s) occurred, yet all resulted in serious accidents, with corresponding liability for the companies owning the trucks.

How can these situations be avoided?

Start your season right . . .
Vince Lombardi is considered one of the greatest football coaches of all-time winning five NFL Championships in seven years, including three in a row.
Lombardi would start each season based the assumption his players had forgotten everything from the prior year.
Lombardi would start his first training session by holding up a football in his right hand, saying, “Gentlemen, this is a football.”

⦁ This concept of starting with the basics can be carried over to your driver and operator training.

⦁ One best practice is to assess drivers and operators on the basics, then, if necessary, provide gap training. This assessment can occur during orientation, safety meetings, etc.

⦁ Driver and operators need to become knowledgeable on your safety policies and the rules of the road. Not everybody with a CDL has attended formal training before taking the CDL road test. Some states issue driver’s licenses to adults without any kind of formal training.

⦁ Reinforce your training. Training in the basics can be followed up with a later assessment, then reviewed again, at another time.

⦁ Drivers and operators need to know all the basics of regulatory rules and requirements they operate under. This might include (among others): inspections, chaining rules in winter, hours of service rules, using ELDs, drug testing requirements, proper load securement, operating in adverse weather, and so on.

⦁ Training on the basics should be continuous and periodic throughout your drivers’ and operators’ tenure at your company.

“Perfection is not attainable, but if we chase perfection, we can catch excellence.” —Vince Lombardi

“Winning is not a sometime thing. It’s an all the time thing.
You don’t win once in a while.
You don’t do things right, once in a while.
You do them right all of the time. Winning is a habit. Unfortunately, so is losing.” —Vince Lombardi

2021 Insurance Saving Tip #64

Lagging vs Leading Indicators: Are you measuring Success or Failure?

Early warning systems are necessary to indicate when safety performance is deteriorating, safeguards are failing, or to reveal problems before a safety event or incident occurs.

An indicator is a measure of change over time. It may also be called an index or a measure or metric.

For example, accidents, collisions, incidents, “near misses,” etc., can be, with proper analysis, lagging indicators or measures of past performance.

There is no need, however, to wait for an accident, collision or some other events to measure safety. Leading indicators can be forward-looking measures of future safety performance.

For example, in working with data you already have, some lagging indicators, such as a series of collisions or “close calls,” if they occur repetitively or together in certain combinations, can also serve as leading indicators.

OSHA, for example, defines leading indicators as: “proactive, preventive, and predictive measures that provide information about the effective performance of your safety and health activities.”

Examples of leading indicators might include the tracking of: attendance at safety meetings or training; the completion of inspections or pre-operational checks; the reporting of safety faults or defects; the making of safety suggestions, and so on.

In selecting a leading indicator, start with an objective, problem, target or goal. The measurement provided by a safety metric is not about proving something; it is about improving. It is a means of measuring progress towards (or away from negative) goals.
An example could be improved roadside inspections.

Setting some goals for Roadside Inspections
Roadside inspections are costly in lost productivity and fines, but failed inspections can result in a higher CSA “points.”
• Drivers with clean roadside inspections – Goal: 90%
• Total aggregate CSA points for the fleet per month–Goal: X points
• CSA points per BASIC* per month – Goal: X points
*Behavior Analysis Safety Improvement Category

What data should you collect for a leading indicator to improve roadside inspections?

Some choices might include:
•Time spent on pre-trips/post-trips: Are they be done correctly?
•Quality of pre-trips/post-trips: Have any cited defects been reported by the driver? Are the defects found on roadside inspections a driver-side issue, or perhaps a repair-shop issue?

Next, from time-to-time measure the progress made toward your goal and take appropriate action if you are not meeting it.

For example, driver time spent on pre-trips could be reviewed weekly, and roadside inspection results reviewed monthly.

The last step could be a periodic review of your objective, problem, target or goal, and your leading indicator. Are you meeting your goal(s)? Is the leading indicator serving your goal(s)? Should anything be further adjusted or changed?

The long-term rewards of managing safety performance with indicators are:
⦁ Improvements in safety performance and turnover
⦁ Less potential for litigation and loss of control
⦁ Fewer compliance and regulatory issues
⦁ A systematic risk management approach
⦁ Lower workman compensation insurance
⦁ Lower insurance fleet premiums ■

“One accurate measurement is worth a thousand expert opinions.” —Grace Hopper


“The measure of success is not whether you have a tough problem to deal with, but whether it is the same problem you had last year.” —John Foster Dulles


OSHA’s Using Leading Indicators to Improve Safety and Health Outcomes

5 of the Best: Insurance Best Practices to Save You Time and Money

Best Insurance Practices

#55 Check out the “Finding Affordable Insurance” Guide
#56 Eliminate Cargo Claims in 3 Bold Steps
#57 Understanding Surplus Insurance
#58 Finding Good Low-Cost Safety Training Resources
#59 It’s Definitely Okay to Speak up for Safety!

2021 Insurance Saving Tip #55

Check out the “Finding Affordable Insurance” Guide

The National Accounting and Finance Council (NAFC), is a dues-based, membership-based council, a part of the American Trucking Association (ATA). The NAFC helps its members in addressing the business challenges facing the trucking industry.

The NAFC and the ATA’s Insurance Task Force (ITF), formed a working group of attorneys, insurers and motor carriers to provide information for its members in obtaining affordable insurance.

The result of their work is the “Finding Affordable Insurance” Guide.
⦁ The “Finding Affordable Insurance” Guide is available to both members, and non-members.
⦁ According to Jennifer Wieroniey, Executive Director of the NAFC, the guide helps companies ”prepare for renewal by getting their safety and loss documentation in order early, developing a risk-retention strategy and presenting the best possible case to underwriters.”

Please contact Jennifer Wieroniey directly, if you have any questions.
⦁ Jennifer Wieroniey, Executive Director, NAFC
950 N Glebe Rd., Suite 210
Arlington, VA 22203-4181

⦁ Phone: (703) 838-1782
⦁ Email: nafc@trucking.org​
⦁ The “Finding Affordable Insurance” Guide

2021 Insurance Saving Tip #56

Eliminate Cargo Claims in 3 Bold Steps

⦁ What are cargo claims?
⦁ What drives cargo claims?
⦁ How can cargo claims be reduced or eliminated?

⦁ There’s a saying amongst experienced drivers,

“You don’t drive the truck, you drive the load.”

⦁ But even with good, experienced drivers, good equipment, and good roads, cargo claims reoccur and seem inevitable.

What can be done?

The Carmack Amendment to the Interstate Commerce Act (49 U.S.C. § 14706) holds haulers for hire (motor carriers) and freight forwarders, in interstate commerce, to a standard of strict liability in taking possession of and in hauling property.

⦁ Subsequent court holdings have expanded liability to brokers, depending on how they represent themselves, and Carmack does not preempt state laws for brokers, as it does for haulers.

Cargo claims can arise from (among others):
⦁ Damage (noted at time of delivery)
⦁ Loss (freight tendered, but never delivered)
⦁ Shortages (partial or less than full delivery)
⦁ Concealed damage or shortage (discovered after the freight has been delivered and signed for).

Step 1: Know your cargo. Know your load.
What type of freight and commodities will you or do you haul? Everyone in your company should know and be drilled on your “Do Not Haul” list. A second “Call Before You Haul” list also needs to be common knowledge.

What should be on your “Do Not Haul List?

⦁ Anything excluded by your cargo insurance. This list should be reviewed and checked again after each new policy or renewal.
⦁ Anything beyond your cargo insurance policy limits. Look for caps or limits on certain items in the policy.
⦁ Anything that requires equipment you do not have, or drivers lacking adequate experience in hauling that type of freight.

⦁ Contraband—as cannabis (See Tip #19) or anything illegal
⦁ Mystery or sealed loads with unspecified cargo aboard
⦁ Commodities which require special permits, licenses, or placards that you don’t have. This could include (but is not limited to): flammables or combustible liquids, explosives, compressed gasses, acids, hazmat, perishables, or high-dollar loads, beyond the extent of your cargo insurance.

⦁ Anything beyond the capacity of your equipment or the capability of your driver(s). Examples might include: placing steel in dry vans; paper rolls or beverages hauled by drivers lacking or having limited experience with these items.
⦁ Anything that can’t be counted but should be, when loaded.
⦁ Anything that cannot be properly secured

⦁ Anything that might be too heavy to haul or the weight cannot be properly distributed, or even ascertained.
⦁ Anything oversized, extending beyond legal limits or requiring an escort, that is not available.
⦁ Anything requiring travel over bridges and tunnels with an item banned on that part of the road.

⦁Your “Call Before You Haul List” could include:
⦁ Anything that might be considered hazmat or hazmat lacking proper shipping paperwork or placards, or a driver without a hazmat endorsement, if required
⦁ Anything unusual as: Artworks, antiques, pharm, automotive engines or small engines, electronics batteries, fluids, etc.
⦁ Anything needing more clarification or proper paperwork.

Other Exposures . . .

⦁ Reefer loads require a high level of knowledge including how to properly set, monitor, and fuel the reefer; how the load needs to be distributed for proper air circulation; proper cleaning and washout methods before and after loads; precooling the trailer before loading, checking the temperature of the product being loaded before, during and sometimes after the trip, and so on, at all hours of both the day and night.

⦁ Tanker loads for food and other commodities, as well as heavy haul, open-deck, dry bulk pneumatic, and other specialty loads are beyond the scope of this general cargo brief.
⦁ Every different trailer and particular load has its own unique set of risks (exposures), which require special knowledge and experience and its own set of minimum standards.

Step 2: Ensure everyone is onboard on what can and cannot be hauled, who can haul it, and with what equipment. Again, for example, a good driver with lots of dry van experience may not be qualified to haul steel or paper rolls in a dry van.
⦁ Make sure drivers know how to properly secure their loads, or if even the load can be secured.
⦁ Always ask for any special load instructions before dispatching a truck for the load

Step 3: Ensure you have high enough limits on your Motor Truck Cargo. About $250,000 in coverage is not unusual. More may be required, depending on the load.
⦁ Check for any special clauses or limits in your cargo insurance. There is no such thing as a “standard” cargo policy.
⦁ Be sure you both do and document everything your insurance agreement expects you to do.

Defenses for losses might include:
⦁ Act of God: tornados, hurricanes, floods; or an Act of Public Enemy: a loss due to an attack
⦁ Act of the Shipper: The shipper is totally responsible for the damages incurred
⦁ Act of Public Authority: Example your load of bottled water was seized in an emergency zone by local authorities
⦁ The Inherent Vice or Nature of the Goods Transported: Ex.: Steel that rusted due to humidity, even though the carrier securely tarped the load.

 Additional actions include:
⦁ Ensure the driver takes pictures of the load when delivering, before unloading, after the seal is broken, showing the condition of the cargo.
⦁ Take pictures showing any damage done while unloading.
⦁ The burden of proof is always on the motor carrier to prove cargo damage was not due to the carrier’s negligence.

 Study your cargo claims:
⦁ Look for the root cause in each claim
⦁ Make sure the insurance company is made aware, if the claim was not your fault.
⦁ Take the appropriate steps to improve and eliminate your cargo losses.

In Summary:
⦁ The Carmack Amendment puts liability for cargo on carriers and freight forwarders, in interstate commerce.
⦁ Brokers can be liable, depending how they represent themselves to the shipper

⦁ Step 1: Know your cargo. Know your load.
⦁ Have a Do-Not-Haul and a Call-Before-You-Haul list

⦁ Step 2: Get everyone onboard on what can and cannot be hauled
⦁ Ensure staff is aware of what they can and cannot haul, when to call in, if not sure, and how to properly secure and distribute the load.

⦁ Step 3: Make sure you have adequate cargo insurance and know what is disallowed and what any coverage limits are.

Document any losses at delivery.
Study your losses.

2021 Insurance Saving Tip #57

Understanding Surplus Insurance

What is surplus insurance?
You may have heard of the term “surplus” insurance. Surplus insurance covers these three basic categories:
⦁ (1) “non-standard” risks, with unusual underwriting characteristics (new company, special circumstances, etc.)
⦁ (2) unique risks; (high risk, one-of-a-kind, etc.), and
⦁ (3) “capacity” risks, with higher coverage levels than average

Other names for surplus insurance include: specialty, non-admitted, excess lines, excess and surplus (E&S), or the “nonadmitted market: (meaning the insurance company itself is not formally licensed with the state to provide insurance but rather must sell through a state-licensed agent or broker).

Why would you need surplus insurance?

⦁ One reason many companies obtain surplus insurance is they have been declined by the admitted insurance companies.
⦁ Insurance companies like to “pool” risks with similar risks. If your company has a unique situation, doesn’t a loss history to review because it’s a new enterprise, or had a series of recent losses, making it difficult for underwriters to classify or understand in full, and several insurance companies decline to quote you, then the only option might be surplus insurance.

⦁ Under 10% of the total property and casualty insurance market is “surplus insurance.”
⦁ It is considered a strong market, as rates are commensurate with risk, higher than standard insurance.
⦁ Because it is “non-admitted” insurance, it follows fewer state rules and regulations about fees it can charge and the risks it can cover.

Who sells surplus insurance?

The surplus insurance market is dominated in the U.S. by Lloyd’s of London, which had about 22% of the market in 2019. Sometimes Lloyd’s insurance is sold and underwritten through domestic insurance companies and their brokers.
⦁ Other players include: American International Group (AIG), Markel Corporation Group, Nationwide Group, W. R. Berkley Insurance Group, Berkshire Hathaway Insurance Group, Chubb INA Group, Fairfax Financial (USA) Group, and Liberty Mutual, and others.

What to expect, if you need surplus insurance?
⦁ The policy may be different than a standard policy, so be sure to carefully review it.
⦁ The premium may be higher, and there can be additional fees.
⦁ Expect a loss-control review of your operations, to help assess and develop recommendations to lessen risks.
⦁ Be sure you understand all the provisions and any exclusions. ■

⦁ See: FAQs from the Surplus Lines Association of IL

2021 Insurance Saving Tip #58

Finding Good Low-Cost Safety Training Resources

⦁ Why do we need to train our operators and drivers?
⦁ What training topics should be covered?
⦁ How much training is needed?
⦁ Where can good low-cost training resources be found?

Why is training necessary?
⦁ One reason is the array of new safety technology introduced onto vehicles and construction equipment. It can be truly a double-edged sword if the operator or driver does not know how to use it, or worse, if the operator becomes distracted by it, and later it was found to have contributed to a mishap or the features are intentionally turned off.
⦁ Do your operators and drivers know both the limitations and capabilities of your vehicle’s technology?

Other reasons for training and retraining are that

a.) all skills are perishable, and

b.) without an occasional refresher, training can become stale or even forgotten.

For example, training on emergency procedures or steps to take in an accident may never be used for years and can become fuzzy when it is most needed.
⦁ “Brains exist on a big distribution—so everyone’s reaction can be quite different in an extreme situation,” says Dr David Eagleman, PhD. Brain response is helped by knowing what to expect by training.

Training topics should include:
⦁ Critical, task-specific safety training, before the task(s)
⦁ Mandated certifications and recertifications
⦁ General safety training
⦁ Training to meet or exceed any compliance requirements, including new rules and regulations
⦁ Advanced training, as Train-the-trainer, supervisory, leadership, etc.

How much driver or operator training should we do?
⦁ The answer depends on the trainee’s level of skills and the tasks at hand.
⦁ For critical tasks, follow a rigorous training schedule.
⦁ Routine training can range from short, daily on-site toolbox talks to quarterly driver meetings.
⦁ Your insurance company likely will want to know more about your training policy. Be ready for these questions.

Where can good training resources be found?
⦁ Start with your insurance company. Many insurance companies differentiate themselves with a strong safety and loss control department. Best of all, it’s usually included in the premiums, so it will not cost anything at all.
⦁ Check internally. You may have more talent than you could imagine, that can be polished in a safety-development program.
⦁ Check the YouTube sites of associations, trade groups, even competitors. These can help you focus on current safety issues.

⦁ There is array of new safety technology on mobile equipment, regulation and compliance issues pointing to the need for recurrent workforce training. Without periodic training, needed skills can become stale.
⦁ Your insurance company may want the details of your program.
⦁ Low-cost training resources are available from: your insurance company, internally, and professional associations and trade groups. YouTube can be a source of low-cost, but high-grade training videos dealing with current or pressing safety issues.

2021 Insurance Saving Tip #59

It’s Definitely Okay to Speak up for Safety!

I was new and afraid to ask.

















“Safety is a communications problem.”

Kevin Burns, Safety Consultant

I thought I'd look stupid if I asked again.

















“According to my research, 80 per cent of all accidents or incidents are caused by some sort of error in communication and 15 % by lack of proper training.” Marco van Daal, Safety Evangelist

I thought I could wing it.

















“I believe that with some basic training we can reduce the number of accidents by 50 per cent easily.”
Marco van Daal, Safety Evangelist

Thank you for reading this. ■

Save Big on Commercial Vehicle Insurance . . . and More

Buy Low . . . Sell High!

While freight rates are high due to current market conditions, unfortunately, so is commercial auto insurance. It’s been on the rise for the last 18 months or so. And unfortunately, no one is predicting a drop in insurance rates in the foreseeable future. Market cycles seem to be longer in the insurance world.

In that spirit, here are some additional things, some “best practices” that the best companies are doing which can result in a better risk profile and lower premiums. This article covers:

#50 The Quick Fix for High Insurance Premiums
#51 The Mobileye Forward Collision Warning system 
#52 Understanding Driver Biometrics Liability 
#53 Brain-friendly communications . . . for the important stuff
#54 Do I need broker liability coverage?

Disclaimer: This is not legal advice, only information for possible ways to reduce risk, improve your risk profile, or save on insurance. Seek any legal advice from qualified legal counsel. Seek insurance advice from a qualified, licensed insurance agent or broker.

Best Insurance Practices

2021 Insurance Saving Tip #50

The Quick Fix for High Insurance Premiums

How insurance companies assess risk varies from company to company. Insurance risk-assessment models are considered trade secrets, based on a number of factors including your business’ history, how you run your business, how you approach things, and so on, not only recent claims.

In “hard markets,” however, insurance companies tend to circle the wagons. Their mandate can change, and they sometimes will over-scrutinize things that would not have been worth a second look a few years prior.

  • Part of this is based on pressure from their investors. Part of this is also pressure from the State regulators who make the rules under which they must abide.
  • One area is in the payouts for claims. A claim is a claim is a claim.

For example, a small operation with trucks filed four claims averaging about $1,500 each, and their policy was not renewed. They had to scramble to find a new insurance carrier and their agent advised the owner, in the future, to not even file anything under $20,000.

  • While four small claims are not statistically significant, as they could happen to anyone, the owner was doing everything right and yet still found himself in a bad spot with his insurance company.
  • What was the problem?

This could be looked at from a few ways. Had the owner paid out of pocket, he would have not filed the claims, and would likely have been renewed.

  • Someone might have also suggested increasing his $1,000 deductible. Perhaps his agent did suggest that, but at the time it was shrugged off.
  • The lesson here, in this time of unruly insurance companies, is to seriously look at your deductibles. As in the above example, a deductible can be too low, and work against you.
  • What can you do?

While everyone’s situation is different, start by looking back at your claims history. How much is your average claim? How often do they occur?

  • Get an insurance quote based on several deductibles, starting with your ideal number, then bumping it up. A higher deductible should result in not only lower premiums but lessen the number of claims paid by the insurance company.
  • How much collateral do you have? Are you able to escrow the amount of the deductible? Not paying a deductible when due can result in policy cancellation.

Savings from lower premiums should be set aside to cover possible future claims and deductibles.

  • Deductibles can be slowly bumped up, from year to year (stair-stepped).
  • A higher deductible can substantially reduce your premiums.
  • Be sure to have a program in place to reduce accidents and collisions in the future in both in number (frequency), and in size (severity).

“The Quick Fix” Summary

  • Insurance companies are under pressure to lower the number of claims they pay out on.
  • Increasing your deductibles (retention) can both lower your premiums and improve claim payouts made by the insurance company.
  • Finding the right deductible for you is more art than science. Work with your agent or broker to ensure your deductible isn’t too low or too high.
  • At the same time, renew your efforts to improve your claims history.

2021 Insurance Saving Tip #51

Install the Mobileye Forward Collision Warning system
on your Vehicles

What is Mobileye?

  • Started over two decades ago in a garage with the mission of improving camera-based technology to make mobility safer.
  • In 2011 the company introduced the world’s first OEM production vision-only Forward Collision Warning system.
  • Their various systems are installed on over 60 million vehicles on the road.

Why a forward collision avoidance system?

  • Says Mobileye: “Rear-end crashes are one of the most common types of collisions. They are often the result of drivers following too closely or drivers that are distracted or speeding. In fact, 40% of rear-end collisions have no brake application whatsoever, reflecting driver distraction. The NTSB has found that over 80% of rear-end crashes could be prevented with forward collision avoidance systems.”


While newer trucks have built in advanced driver-assistance systems (ADAS), with a number of functional features, the Mobileye Forward Collision Warning system has a device which can be added-on or retrofitted to vehicles without an ADAS.

  • This makes it possible to upgrade every vehicle in your fleet with a forward collision warning system to help eliminate most rear-end collisions.
  • There are no monthly fees after the initial installation.

Contact information:

1350 Broadway, Suite 1600
New York, NY 10018
Tel: 1-877-867-4900

2021 Insurance Saving Tip #52

Understanding Driver Biometrics Liability 

  • What are biometrics?
  • What is biometric information?
  • Why is use of biometrics data a recent concern?
  • Do I need a biometrics data use policy?

Biometrics are a person’s unique biological measurements including the physical characteristics of a person.

  • Biometric information refers to unique biometric identifiers such as a person’s fingerprints, facial patterns, voice, and iris recognition.
  • Use of biometric information, based on privacy concerns, is gradually being regulated by various states, opening up employers who use biometric data to fines or lawsuits.
  • In 2008, the State of Illinois passed the Biometric Information Privacy Act (“BIPA”), 740 ILCS 14.
  • On April 1, 2009, the Texas Statute on the Capture or Use of Biometric Identifier, Tex. Bus. & Com. Code Ann § 503.001, went into effect.
  • And the State of Washington passed House Bill 1493, the Washington Biometric Privacy Law, effective on July 23, 2017.
  • Other states and even some cities define and regulate the use of biometric data.

While biometric laws vary from state to state and city to city, almost all generally require:

  • An employee be given notice of the intended capture of the data
  • An employee consents to the use of the data, before capture
  • Disclosure, lease, or sale of biometric data is prohibited
  • The data is destroyed when no longer needed, per laws in effect
  • Illinois law requires a policy in writing, with specific elements
  • Insurance coverage for liabilities involving the use of biometric data should be discussed with your insurance agent or broker.
  • Policies (and any exclusions) covering biometric liability might include provisions found in:
    • —General Liability
      —Cyber Liability
      —Employment Practices Liability
      —Other coverage, as in Media Liability insurance

Best Practices should include the previous general requirements:

  • Give employees notice of the intended capture of the biometric data, before it is collected; What is collected, and why? How will it be used? Who will use it? Who will share it? When will it be destroyed?
  • Obtain the employees consent of the use of the biometric data, before it is captured
  • Do not maintain the biometric data beyond its useful shelf life, other than in meeting other legal requirements
  • Obtain employee “buy-in” before deploying any devices collecting biometric data as driver-facing cameras. Explain how the data not only benefits the company or organization, but how it will directly benefit them.
  • Create a biometric data policy for your organization.
  • Review your insurance program for any gaps in coverage regarding biometric liability.

Finally, be sure to consult with appropriate insurance, risk management, or legal professionals, if uncertain about biometric laws and requirements.

2021 Insurance Saving Tip #53

Brain-friendly communications . . . for the important stuff

  • How can we better communicate with operators and drivers?
  • What can be done to help our staff recall important messages?
  • How can we be more effective in our communications?

Everyday we communicate with operators and drivers. It starts on day zero and can continue, we hope, until their retirement.

  • Even experienced operators and drivers can feel overwhelmed or overloaded at times with too much information, too many directions, or with complex instructions.
  • One strategy used by top companies is to design their communications to be “brain friendly.”

You Must Remember This . . .

  • In order for your information to be useful, it needs to be put to good use. That is only possible, if the information is easy to recall.
  • Spoken words can only be recalled for several seconds. Remember the “3-second Rule” when conveying an important message, you want others to recall later.
  • Key Point: If you can say it in three seconds or less, it will likely be more memorable, therefore more actionable.

Keep It Simple!

  • Make sure the information is easy to recall by using simple language and relevant examples.
  • Use simple words and phrases, also known as plain language: familiar or commonly used words. (See plainlanguage.gov)
  • “Words move, examples compel.” Use examples or stories directly connected or related to the topic at hand.
  • It’s okay to occasionally pause and ask, if any additional clarification is necessary or, if the listener understands, so far.

Break It Up!

  • If possible, break up longer sessions into shorter ones. For example, break up a 90-minute topic into two 45-minute or even three 30-minute sessions, and spread them out. A week apart is best.

“Research on the forgetting curve shows that within one hour, people will have forgotten an average of 50 percent of the information you presented. Within 24 hours, they have forgotten an average of 70 percent of new information, and within a week, forgetting claims an average of 90 percent of it.” Art Kohn

“Brain Friendly” Summary

  • Design your communications to be brain friendly.
  • If you can say it in three seconds or less, it will likely be more memorable, therefore more useful.
  • Use simple, plain language: familiar or commonly used words.
  • Add in a few relevant examples or stories
  • Ask if further clarification is needed?
  • Break up or spread out longer sessions.

2021 Insurance Saving Tip #54

Do I need broker liability coverage?


  • Companies hauling freight (motor carriers) sometimes have customers with special needs that require more capacity or occasional loads with specialized equipment the hauler does not have.
  • To satisfy the customer, the motor carrier then obtains DOT authority to become a broker.
  • But do you need broker liability coverage?

A broker is defined in United States Code as:

49 U.S.C. § 13102:

The term “broker” means a person, other than a motor carrier or an employee or agent of a motor carrier, that as a principal or agent sells, offers for sale, negotiates for, or holds itself out by solicitation, advertisement, or otherwise as selling, providing, or arranging for, transportation by motor carrier for compensation.”

The DOT defines a property broker on its OP-1 application for authority as:

  • Broker of Property (except Household Goods) — An individual, partnership, or corporation that receives payment for arranging the transportation of property (excluding household goods) belonging to others by using an authorized Motor Carrier. A Broker does not assume responsibility for the property and never takes possession of it.

(c) Brokerage or brokerage service is the arranging of transportation or the physical movement of a motor vehicle or of property. It can be performed on behalf of a motor carrier, consignor, or consignee.

The DOT requires a surety bond (Form BMC-84) or a trust agreement, used in lieu of a surety bond (Form BMC-85) for broker authority. 49 CFR § 371.2 (c)

Meeting the DOT requirements means the decision to add liability insurance is a business decision, not a regulatory requirement.

If the business does not purchase insurance for whatever operations it is engaged in, then it is assuming all of the risks of liability.

What is the liability involved for a brokerage?

Brokerage liability can arise from (among other causes), tendering a load to a motor carrier :

  • without proper DOT authority, or insurance
  • with a questionable safety rating or safety history
  • that double-brokers the load to a third-party carrier
  • that provides fictitious information, or successfully evaded your best efforts for due diligence

Truck Broker Liability insurance covers companies operating with DOT broker authority.

  • It is a primary insurance, covering brokerage operations up to the limits of the policy, regardless of what other insurance policies are in effect.
  • It provides coverage for possible mistakes made at the time the load is tendered, resulting in later claims.

Do you need the coverage?

  • As always, it is best to discuss your specific insurance needs with your agent or broker.
  • The insurance company will want to know how you vet carriers for brokered loads, before hiring them, what due diligence and due care you take in the vetting process, what your broker/carrier agreement looks like, and so on.
  • Also be sure to consider the counsel of a good transportation attorney. ■

Commercial Insurance Best Practices Save You Money

Best Insurance Practices

The following best practices are ways you can save money, avoid towing fraud, lower your out-of-service (OOS) scores, determine if an accident really is a DOT accident, and help stabilize rising insurance premiums.

2021 Insurance Saving Tip #45

Notify your Insurance Company on a claim . . . even if you have already contacted your Attorney

Some companies and organizations keep an attorney on a retainer basis to go over any potential legal issues, including accidents, incidents or potential claims.

Some attorneys simply insist on staying informed of any situations involving potential liability for the business.

And some attorneys may provide their clients with “coverage opinions,” on whether or not the insurance liability claim on their vehicle would be covered. They will review if the policy was in effect, if the claim involves the insured or an additional insured, if there were any exclusions to the policy, and any exceptions to the exclusions, if the terms and conditions of the policy apply, and what is the effect, if any, of the endorsements on the policy.

If you do discuss an incident or claim with an attorney, be sure to also report it to your agent or insurance company.

Says one insurance company, “While we all hope to not have a claim, we know that things happen. The first thing to remember is to report the incident to your insurance company immediately.” (IFG Claims page)

Why do some policyholders delay in reporting a claim?

Some policyholders fear that reporting incidents or claims will result in higher rates, more restrictive policy terms, or even a potential nonrenewal of the policy. It’s a legitimate concern.

Some want to “handle it themselves,” perhaps paying out-of-pocket (think twice before proceeding in this direction—as it can be seen later as a possible “admission of liability”), or they rely on counsel’s opinion that the potential claim “might not be covered.”

Reality check! Delay in reporting an incident or claim can result in forgoing your insurance company’s advice and assistance in resolving the matter. Only the insurance company can make the determination, if they will cover the claim. And to do so, any claim needs to be promptly investigated.

If not notified of a claim within a reasonable time, the insurance company may be relieved of their responsibility to defend, and ultimately pay the claim. This could be costly to your company, as in some claims, the defense tab can exceed the actual claim.

Make sure your workforce reports all incidents and accidents to you, so they get properly and promptly handled.

If you have a concern your premiums will jump because of the number or claims submitted, this could be a cue it might be time to find another insurance company. As one risk manager noted, the same insurance company raising your rates because of the number or claims submitted, is the same insurance company likely to also deny claims submitted. It might be better to pay a little more in premiums in return for better service.

In Summary:

  • Always promptly report any claims to your agent.
  • Don’t merely rely on your counsel to determine, if you are covered under an insurance policy. Let the insurance company make that determination.
  • Don’t pay any claims out of pocket, unless this has been agreed to by the insurance company.

2021 Insurance Saving Tip #46

A Quick Start to Lower Premiums

For some business owners, insurance is kept on the back burner for most of the year, except perhaps in the two or three months before renewals. There is always a lot going on in the business, and this insurance stuff always seems to eat up a lot of time and energy.

Reality Check: The market is firming up. Adopt a longer view, a long-term strategy when dealing with your insurance needs.

A change in mindset on how you approach insurance might be needed.

  • Can you change your structure to lower your insurance costs?
  • How much risk can you retain?
  • Are there other options in the marketplace?

Check with your agent or broker how much your premiums would go down with a higher deductible.


  • A 500 unit fleet, had a $10k deductible. Bumping that up to a $75k or $100k deductible might save them about $80,000 a year, if not more.

Some fleets “stair-step” higher deductibles, for example starting at perhaps $50k, then $75k the next year, and $100k the year after.

  • Even with a higher deductible, the claims process is the same—all claims are still handled by the insurance company.
  • Quick Tip: Retaining more risk (with a higher deductible) opens up the market to getting more quotes back from underwriting!

2021 Insurance Saving Tip #47

Was It an Accident? The Answer Could Affect Your Premiums

The U.S. DOT requires DOT regulated carriers keep an “accident register” or list of accidents with specific data.

All DOT “recordable accidents” should be listed on this required document (involving commercial motor vehicles (CMVs) rated at 10,001 pounds GVWR and greater).
Insurance companies also are interested in this information.

  • For DOT reporting purposes it is irrelevant whether an accident is classified as a “preventable” or “non-preventable” accident.
  • “Fault” does not matter here for recording purposes.
  • So what is an accident?
  • What is the DOT criteria for an accident?
  • Where is it found?

If the federal regulations were put in a book, then Part 390 would be called “Chapter One.”

Specifically, in the beginning section of 390.5 Definitions, the term “accident” is defined, as well as other terms and words that make up the definition.
To understand the definition, you need to understand all of it, including the terms as they are defined and used.

An accident . . .involves a CMV . . . on the highway . . . which results in:

  • (i) A fatality;
  • (ii) Bodily injury to a person who, as a result of the injury, immediately receives medical treatment away from the scene of the accident; or
  • (iii) One or more motor vehicles incurring disabling damage as a result of the accident, requiring the motor vehicle(s) to be transported away from the scene by a tow truck or other motor vehicle.

The DOT also excludes from the definition of a recordable accident:

  • Only boarding and alighting from a stationary motor vehicle; or
  • Involving only the loading or unloading of cargo.

Where it happen? A highway “means any road, street, or way, whether on public or private property, open to public travel.”

  • So a DOT accident can happen on any road, any where, if it is “open to public travel.” This could be a parking lot or yard, unless it was gated, guarded, or had some means of controlled access, making it NOT open to public travel. If access to the location was controlled, then it was not a DOT recordable accident.

Was anyone fatally injured?Fatality means any injury which results in the death of a person at the time of the motor vehicle accident or within 30 days of the accident.”

  • The DOT uses a thirty (30) day counting period for accident fatalities. If a person dies as a result of injuries received in a traffic crash with a CMV within thirty days of the date of the crash, that victim is considered a traffic fatality, and the accident is DOT recordable.

Was anyone injured? Bodily injury means injury to the body, sickness, or disease including death resulting from any of these.

  • The classification and type of injury are not important as the timing of the treatment. It must take place “immediately.” DOT says:
  • Guidance:The term ‘‘immediate’’ means without an unreasonable delay. A person immediately receives medical treatment if he or she is transported directly from the scene of an accident to a hospital or other medical facility as soon as it is considered safe and feasible to move the injured person away from the scene of the accident.
  • Question 20:A person involved in an incident discovers that he or she is injured after leaving the scene of the incident and receives medical attention at that time. Does the incident meet the definition of accident in 49 CFR 390.5T?
  • Guidance:No. The incident does not meet the definition of accident in 49 CFR 390.5 because the person did not receive treatment immediately after the incident.
  • Any type of vehicle, privately owned or an ambulance, may be used to transport an injured person from the accident scene to the treatment site, but it must occur immediately after the crash.

Some motor carriers only utilize the information listed on the police accident report. This can be misleading.

  • If there were really any injuries making the accident recordable, further investigation may be necessary to properly determine if any medical treatment was received, or if the person merely had a check up, or went for observations.

Was there any disabling damage requiring towing?

  • Disabling damage means damage which precludes departure of a motor vehicle from the scene of the accident in its usual manner in daylight after simple repairs.
  • (1) Inclusions. Damage to motor vehicles that could have been driven, but would have been further damaged if so driven.
  • (2) Exclusions. (Not DOT Reportable accidents)
  • (i) Damage which can be remedied temporarily at the scene of the accident without special tools or parts. (A mirror or fender can be pulled back into place.)
  • (ii) Tire disablement without other damage even if no spare tire is available. (Flat tire.)
  • (iii) Headlamp or taillight damage.
  • (iv) Damage to turn signals, horn, or windshield wipers which makes them inoperative.

Other nonreportable events would include:

  • A commercial motor vehicle becomes stuck in the median or shoulder, without contact with another vehicle. (Interpretation Question No. 12). A tow in this instance normally does not make this incident into an accident.
  • Other vehicles that leave roadway without contract from motor carrier vehicle (Interpretation Question No. 28)

Be sure to also check the DOT’s Motor Carrier Management Information System (MCMIS), which contains a Crash summary of 4 years, and individual crashes of 1-2 years (from State crash reports).

DOT Accident Summary

  • All accidents are not necessarily DOT accidents. Be sure your required DOT Accident Register reflects only those accidents which meet the criteria for DOT Accidents.
  • Where did they occur (on a highway)? Was there a fatality (within 30 days)? Was there an injury (requiring immediate treatment)? Was there a towed vehicle (due to disabling damage)?
  • Is the DOT’s MCMIS data correct for your company?
  • Have you reviewed your Company Safety Profile in the last year?

Insurance Saving Tip #48

Understanding Towing Insurance Fraud

  • The illegal towing and recovery of commercial vehicles has become an issue for some fleets.
  • Towing operations are regulated by state or local jurisdictions, so performance can vary from area to area.
  • Some jurisdictions require a separate tow bill for a trailer, thereby doubling the bill for a combination unit.
  • While most towing operators are honest, a small number has been criticized for sharp business practices, including exorbitant fees or holding equipment and cargo hostage. Prevention of towing insurance fraud is always your best defense.

One area drawing attention recently is towing insurance fraud:

  • Non-consensual towing* of vehicles without the owner’s or operator’s consent.
  • Vehicles that are towed at the direction of law enforcement without the prior consent of the vehicle’s owner or operator
  • Towing by an unauthorized tow operator
  • Unreasonable storage and access fees
  • Towing insurance fraud can directly affect your insurance premiums.

*Non-consensual towing occurs when a wrecker makes a tow without the driver’s consent, or at the direction of law enforcement, in the interest of clearing the roadway.

Tips to avoid towing insurance fraud:

  • Ensure drivers do not park a truck on private property, then leave the premises, without an authorization to park there.
  • Become familiar with the laws governing towing in the jurisdiction of the tow.
  • Follow the TMC’s recommended practices RP 527A Vendor Selection Guidelines for Towing and Recovery
  • Carefully review towing and storage bills for inflated items or services not rendered.
  • Ask the towing company to always mail you a copy of the itemized bill.
  • File a complaint with the law enforcement unit responsible for managing the rotation wrecker list, if issues cannot be resolved.
  • Is the towing company properly licensed and adequately insured?
  • Ensure drivers are on the lookout for “runners” or “chasers” showing up offering their tow services at the scene of an accident without being requested by law enforcement or any parties.
  • Make sure you have adequate tow insurance in your policy.
  • If a towing company indicates at an accident scene that they are authorized by the insurance company to be there, verify this information with the insurance company.
  • Ensure drivers know not to sign a “consent to tow” form.
  • Drivers should photograph any tow equipment involved in a tow or recovery.

2021 Insurance Saving Tip #49

Lower Your “Out-of-Service Scores” for Lower Truck Insurance Premiums

The Out-of-Service (OOS) status reflects one or more OOS violations in a single inspection, for either the vehicle or the driver, and, if any hazardous materials were present, for any hazmat violations.

  • The OOS percentage is duly noted by Underwriters

Your Out-of-Service (OOS) Scores reflect certain roadside inspection data over the last two years, based on the number of inspections.

Out of Service Score

There are five levels of DOT roadside inspections:

  • Level 1 – a complete inspection
  • Level 2 – a walk-around inspection
  • Level 3 – a driver-only inspection
  • Level 4 – an inspection for a special study
  • Level 5 – a vehicle-only inspection
  • Level 6 – Level 1 inspection plus additional examination of Radioactive Material

The OOS scores are calculated based on the following types of roadside inspections:

  • Vehicle Inspection
  • Levels 1+2+5+6
  • Driver Inspection
  • Levels 1+2+3+6
  • Hazmat Inspection
  • Levels 1+2+3+4+5+6 (when Hazmat is present)
  • The National Average % is the percentage of all inspections conducted in the USA that resulted in an “Out of Service” status.

National Average

This carrier has about 3,000 units and is well below the national averages. This is where you want to be!

  • The fewer OOS violations found on roadside inspections, the lower the OOS percentages.

Are percentages near the National Average % acceptable?

  • Short answer—Yes. Few insurance companies will expect you to be better than “average.” Slightly below is a good goal.
  • Long answer: If you are in the long game, do everything you can to keep your vehicle and driver inspections with as few OOS violations as possible for the best possible insurance premiums.

How can we improve our OOS percentages?

  • Take advantage of every opportunity to accrue “clean” roadside inspections.
  • Remember the three Fs: Find it. Fix it. But don’t Forget it.
  • Ensure drivers are always physically and medically qualified to drive a CMV (Parts 383 and 391, especially Subpart E of Part 391).
  • Vehicles must meet the inspection and maintenance standards (Parts 392, 393 and 396).
  • If you are not a hazmat hauler, make sure drivers can identify any loads containing hazardous materials, and they always check in, if they have questions on what they are hauling.
  • If you do haul hazardous materials—Follow the standards in Part 397 and U.S. Department of Transportation HM regulations Parts 171, 172, 173, 177, 178, 179 & 180.
  • Over-communicate: Keep drivers current on what they need to know.

Make sure drivers are aware of how they can be placed Out-of-Service, and what they can do to eliminate potential violations. ■

Best Insurance Practices for Better Premiums

Best Insurance Practices

2021 Insurance Saving Tip #40

Study your insurance loss runs

While loss run reports are available for insurance policies covering General Liability, Commercial Property, and Worker’s Compensation, our focus will be on Commercial Auto insurance, covering any vehicle used in business.

The Loss Runs Report or Loss History is generated by an insurance company and contains data for any claims in the last 3 to 5 years. Your agent or broker may have a copy or can obtain a copy for you.

Check for the accuracy of the data. Your loss runs represent your company’s safety performance from the insurance side of things.

Check who was driver. Human factors (driver behaviors) are the leading cause of vehicle collisions, and a few drivers can be responsible for the majority of collisions.

Is the same driver making the same mistakes? Is the driver able to participate in coaching or training? Has there been a sudden change in driver performance? Is the driver undergoing stress at home?

Flag any high-risk drivers for further review.

Check for both collision frequency (number of occurrences) and severity (size of claims).

As a general principle, frequency of prior losses are considered by the insurance industry to be predictive of future losses.

In regard to accident frequency, what types of collisions are trending?

Pay particular attention to: rear-end collisions, backing, side-swipes, roll-overs, loss-of-control, and any collisions involving injuries or a fatality. What measures can be taken to eliminate future incidences?

Smaller, fender-bender collisions also have a story to tell, as they can be predictive of future collisions. Again, look for trends.

The end goal of your loss-runs study should be a gradual, year-to-year reduction in all classes of collisions.

Your loss runs have a story to tell. It’s up to you to write the ending.

2021 Insurance Saving Tip #41

Use a spotter when backing

  • Backing collisions are responsible for 25% of collisions, according to the National Safety Council.
  • Backing collisions range in severity from property damage to unintentional fatalities.
  • No private industry or governmental unit is immune from backing incidents and accidents.
  • Like most collisions, backing incidents are 100% preventable.
  • Unfortunately, larger vehicles have larger blindspots.
  • No matter how careful a driver is while backing, both pedestrians and other vehicles can come into conflict with his or her vehicle, or something can simply not be in sight to the driver.

What about new and advanced technology?

  • One 2009 study of 73 camera-based rear view systems found they can help to reduce collisions about 40%.
  • On the other hand, the NHTSA concluded “sensor-based systems do not perform well enough to effectively prevent backing crashes.”
  • Even with advanced technology, there can be a backing safety gap.
  • For decades, the use of a spotter when backing has been recommended as a safety best practice.

In using a spotter:

  • Agree on signals before backing begins
  • At all times, keep the spotter in sight.
  • Stop, if you lose sight of your spotter.

The driver is always 100% responsible for collision-free backing, with or without a spotter.

2021 Insurance Saving Tip #42

Provide a comprehensive orientation for new hires

  • According to onboarding expert John Kammeyer-Mueller, not a lot of research has been conducted on the first 90 days on the job. But his own research shows, “Those initial expectations and attitudes and interactions can really, early on, change the way that somebody fits into a new job.”
  • Kammeyer-Mueller has found this initial uptake period is critical to new hires, as support from supervisors and co-workers typically starts to drop off the longer a new hire is on the job.

Tips for a better onboarding experience:

  • Whether meeting with an individual or in small groups, are the doors closed and phones set to voicemail, with the ringer off?
  • Are explanations provided on not only what is being covered, but why it is important?
  • Are new hires encouraged to ask questions throughout the process?
  • Are the new hires provided with a clear set of expectations, both long and short-term?
  • Are key staff welcoming, when they meet with the new hire?
  • Is the new hire provided with “go-to” contacts for any ongoing questions, issues, and concerns?
  • Are both pre and post training assessments completed?
  • Is all initial safety training completed within 90 days and any critical safety training done before the start of the task?
  • Is the orientation carefully structured?

“We can do more than just orientation programs, but we need to make sure that that doesn’t stop early on. We need to maintain it through those first 90 days, so that the newcomer can continue to build those relationships, can continue to learn more about the job.”

—John Kammeyer-Mueller

2021 Insurance Saving Tip #43

Enforce a Safe Backing Policy

Why do so many backing incidents and collisions occur (about twenty-five per cent of all accident)?

  • According to the Texas Department of Insurance, the main reason is due to poor driver technique.
  • Adding to that is the fact that some drivers feel pressured when backing off a busy street or onto a legacy dock, one perhaps not designed for modern vehicles.

What can be done to prevent backing collisions?

  • In a previous best practice (#41), the use of a spotter was highly recommended, as even the deployment of new tech as backing cameras will not eliminate 100% of all backing accidents.
  • But much more is needed to be done to ensure safe backing.

Problem area: A new employee is on-boarded or a new equipment configuration is mobilized

  • Best practice solution: Have a process in place so all new employees can do some practice backing, and upskill their backing, if necessary.
  • The same applies if new equipment is mobilized. Staff needs to get used to potential blind spots and the use of mirrors.
  • Provide coaching and practice to staff in need of it.

Problem area: In busy environments others may not notice a vehicle in reverse motion.

Best practice solution :

  1. The operator or driver should tap the horn twice every time before backing. The first time to get attention, and the second time so others can determine the direction.
  2. Put on the emergency lights (4-ways) when backing, and keep them on until done with the movement.

Problem area: There can be obstructions or obstacles in the intended backing pathway.

  • Best practice solution: The operator or driver must walk the pathway each and every time before backing, looking for low-hanging wires or other protrusions, people, vehicles, etc. Drivers need to recall: G.O.A.L. Get Out And Look!

Problem area: Reversing quickly can lead to problems or conflicts quickly occurring, or damage to the vehicle when striking the dock.

  • Best practice solution: The driver should always reverse slowly, at idle speed. This enables timely corrections to be made, if necessary, and mitigates any potential conflicts. Double-check the mirrors before starting, ensuring all mirrors are properly adjusted.

Use a spotter when backing (See Tip #41)

More Backing Guidelines:

  • Don’t back, unless it is absolutely required.
  • Never back for any more distance than is necessary.
  • Be ready at any time to stop or yield right of way to anyone else.
  • The driver/operator should never be out of the seat or outside of the cab, while the vehicle is in motion.
  • Drivers should know their limitations, and not attempt any backing they believe would be unsafe.
  • Put your backing policy in writing and ensure staff are aware of it and follow it.
  • Have a process in place so all new employees can do some practice backing and regular staff can practice on any newly mobilized equipment.
  • The operator or driver should tap the horn twice every time before backing, and use the emergency lights when backing.
  • The operator or driver must walk the pathway each and every time before backing. Remember G.O.A.L.!
  • The driver should always reverse slowly, at idle speed, checking the mirrors are properly adjusted before starting.
  • Use a spotter or guide when backing
  • Don’t back, if possible.

In summary:

  • Have a process in place so all new employees can do some practice backing and regular staff can practice on any newly mobilized equipment.
  • Drivers need to be a aware of their limitations.
  • Codify and enforce your backing policy.
  • Do not hesitate to provide coaching and additional practice in backing, if needed. Always remember, after a while, all skills are perishable. ■

2021 Insurance Saving Tip #44

Road Test All Drivers Before Hire


  • Every driver should be given a road test.
  • In most circumstances, administering a road test is a matter of law, required for DOT-regulated drivers on the federal level, and in those states which have adopted the federal rules.
  • Road testing is taken very seriously by best-in-class companies.

Why road test all drivers?

    • Road testing is simply good risk management. A road test is another way to vet drivers, determine their level of skill, and, as importantly, evaluate their attitude toward driving.
    • Road testing can also inform management of drivers in need of additional training or coaching at hire or throughout their employment.

Note: If the driver does not have a CDL, but is a DOT regulated driver who is driving a Commercial Motor Vehicle (CMV), he or she MUST be road tested and given a certificate of road test. And any DOT-regulated non-CDL owners, partners, managers or owner-operators are also required to be road-rested. The road test must be given by someone else.
An example could be the driver of a pickup at or over 10,001 pounds GVWR, or a crane under 26,001 pounds GVWR.

CDL drivers who always need to be road tested at hire include drivers requiring endorsements because they are driving doubles or triples, or tank vehicles.

Road Testing for Driving Skills

In a 10-year period, I administered thousands of road tests as an examiner.

Essential elements for any good road test should include 1.) a vehicle representative of one the driver will drive 2.) a predetermined route, and 3.) a means to document the test.

  • (1.) The vehicle should be roadworthy and legal to drive.
  • (2.) The predetermined route should be a minimum of 45 minutes in length to get a good snapshot of the driver’s driving ability and attitude.
  • Drivers need time to relax and reveal their true driving style.
  • Before hitting the road, it’s a good idea to let the driver do a complete pre-trip inspection. Note anything that was missed.
  • Include the coupling and uncoupling of combination units, if the equipment he/she may drive includes combination units.
  • After the walkaround or pre-trip inspection, do some “range” exercises in your yard before going out on the road.
  • This might include some straight-line backing, backing the vehicle in between other vehicles, or backing around a 90-degree curve.
  • The driver’s range proficiency should be adequate enough to ensure the applicant has sufficient driving skills to safely drive during the on-the-road portion of the test
  • The on-road portion of the road test should include:
    • 1. Four left-hand and four right-hand turns.
    • 2. A straight section of road in or near a business district.
    • 3. Three or more intersections with various ‘controls’ as stop, yield, a yellow caution light, etc.
    • 4. A railroad crossing.
    • 5. At least one tight curve.
    • 6. A five-mile section of limited access highway or expressway or a stretch of rural two-lane highway. The applicant should demonstrate lane changing during that part of the test.
    • 7. A downgrade long enough to allow the driver to demonstrate downshifting and /or stopping without rolling.
    • 8. An upgrade (hill) to show stopping/starting without rolling backward.
    • 9. An underpass or bridge with a posted weight limit or some other hazard which the driver should see and identify to the examiner when asked.
  • The same person should administer the road test and should be a qualified, experienced driver.
  • When done, give the driver positive feedback, and any areas that need to be improved. If hired, make note of any future coaching or training opportunities.
  • A signed copy of the road test and certificate of completion must be kept in the DOT driver qualification file. A certificate of road test completion should also be given to the applicant.
  • (3.) The DOT has a sample “Driver’s Road Test Evaluation Form” available online, which can be adapted to your specific needs.
  • Road Test Form

    Road Test Form












Other Road Test variations:

  • Some companies do a road test with a live load.
  • Some companies will do two separate road tests, to both help eliminate any bias on part of the person giving the test, and to get a better picture of the driver they are hiring.
  • Some companies will do a road test after a driver has been involved in a collision, involving their driving skills.
  • Some companies do annual coaching “check-rides.”

Timing of the Road Test

    • The road test may be conducted before administering the DOT pre-employment drug screen.
    • After receiving results of the drug test and after a job-offer, the DOT physical can be administered.


    • Every driver should be road tested.
    • Road testing is simply good risk management.
    • Road testing can show which drivers are in need of upskilling or coaching at hire or throughout their employment.
    • A good road test consists of a pre-trip, range and 45 minutes on the road.
    • Document the road test and give good driver-feedback. ■

Another Batch of Insurance Saving Tips

Best Insurance Practices

2021 Insurance Saving Tip #35

Become your organization’s Safety Evangelist

What is a Safety Evangelist?
⦁ Guy Kawasaki popularized the term “evangelist” in the early days of Apple Computer as Apple’s brand ambassador and promotor
⦁ The word evangelist is from Greek euangelistes “preacher of the gospel,” literally “bringer of good news”
⦁ Likewise, a Safety Evangelist is someone in the role of an ambassador and promotor of organizational safety.

Why do we need a Safety Evangelist? We already have a Safety Department!

The typical safety department is very busy, sometimes taking on several additional admin functions, leaving only limited time, if any, for its primary safety mission. In some organizations safety is another word for compliance. I’s are always dotted, and t’s are always crossed, but few new safety initiatives are proactively developed.

Says Safety Evangelist Marco van Daal, author of The Art of Heavy Transport: “Ideally we want zero accidents. Realistically . . . this is not possible. We are working with humans and humans make mistakes.”

Van Daal believes half of all accidents can be eliminated by better communication and training. Says van Daal:

  • When things are not made perfectly clear, they are subject to interpretation. This can lead to serious safety issues.
  • The workforce is becoming increasingly diverse and multicultural, in turn contributing to issues in basic communication.
  • Training is all about communication and training is often not a separate budget line item at many firms.

A Safety Evangelist:

  • Exchanges ideas respectfully, builds goodwill, and communicates in a way so everyone can learn from each other.
  • Makes connections with people, and as Michael Mathieu, CEO of expert platform Prox says, has “an opportunity to effect change in every conversation I have”  by being a catalyst “for change in a positive way.”

Become your organization’s Safety Evangelist today!

2021 Insurance Saving Tip #36

Adopt these Good Inspection Practices

Any equipment on your books is valuable to your business, be it a truck, trailer, forklift or mobile crane. Operator inspections are critical to retain that value. Faults and defects can be frequently found even on new equipment. But they can’t be repaired or mitigated unless they are first discovered.

Problem: The equipment was involved in a serious incident or accident. Perhaps it and any on-board records of recent inspections were destroyed. Perhaps the tablet used for the inspection crashed.

How can a firm show any evidence or prove an inspection was done?

• Best Insurance Practice: Operators should get in the habit of doing all of their pre-trip (vehicles) or pre-operational (lifting, cranes, forklift) inspections in a public area, where they can be seen by others or are under surveillance video.

If later investigated, for example, in litigation, witnesses to, or video tape of the inspection can then be provided.

Another good practice: When an operator returns to the equipment, approach the truck, crane, etc., from the opposite side they left it, for a quick visual check.

Perhaps a tire is flat, or a seal is leaking, or there is hidden damage, or someone left a shovel or crowbar leaning against the opposite side.

Operators need to look for anything unusual.

Problem: Vehicles are stopped at roadside inspection stations and ticketed or cited.

Solution: Usually there is a public Rest Area before the inspection station. Drivers need to pull in here and do a quick walkaround, checking the lights, tires and general condition of the vehicle, wiping off any dirty lights or reflectors, and making any necessary repairs, before proceeding.

While en route to a destination, each time the driver makes a rest stop, it’s always a good recommended practice to check the lights, tires and general condition of the vehicle or load, wiping off any dirty lights or reflectors, and so on.

2021 Insurance Saving Tip #37

Have and Enforce a Mandatory Seat-Belt Usage Policy

Sometimes, something so basic, so fundamental is often overlooked by many of the companies I review. Something that has a huge, huge, impact on your enterprise’s insurance risk profile and premiums, or these days, even the opportunity to obtain insurance at any cost.

One of the first things law enforcement officers always look for during an inspection is to check if the driver is wearing a seat belt.

Your insurance company is also checking if your drivers have been wearing their seat belts while driving. In fact, driver citations for not wearing a seat belt (or safety belt) are considered a serious RED FLAG by insurance companies.

Why is that?

Data from seat belt and driver behavior studies suggest unbelted drivers:

  • Work for an employer without a written safety program
  • Have had at least one moving violation in the past year
  • Often drive 10 mph or more over the speed limit
  • In other words, the unbelted driver is a risky driver or high-risk driver.

Other supporting facts:

  • In any given collision, the likelihood of unrestrained drivers becoming a fatality is higher.
  • Year-to-year, about half of all fatal collisions involve people who are not wearing seat belts
  • Looked at in another way, the odds of dying in a collision when a driver is not wearing a seatbelt are one in two.

What Employers Can Do?

—Enforce a mandatory seat belt use policy.

  • Drivers: (a.)Need to be aware of the policy and (b.) the consequences of violation, up to and including separation from employment.

2021 Insurance Saving Tip #38

Ask the DOT Roadside Inspector to write up any passing inspections

During commercial truck roadside inspections:

  • Vehicles or drivers with observable faults or infractions are “written up” during the inspection.
  • Vehicles passing an inspection, are sometimes not given a “write-up.”

This focus on the negative data can severely skew the U.S. DOT’s Safety Measurement System (SMS) scorekeeping, adversely affecting insurance premiums.

See more on the DOT’s SMS here.

Be sure your drivers always ask the DOT Roadside Inspector to write up or document any passing inspections.

2021 Insurance Saving Tip #39

Help your drivers to prepare for emergencies

Common road emergencies can happen at any time to any driver. How the driver responds can make a big difference on the outcome

The key word here is ‘respond,’ not react, as in some situations as driving on black ice, a blown tire,  front wheel skid, or a tire fire, the proper response could be considered counterintuitive.

Like good pilots who regularly practice emergency landings in both out of cruise flight and immediately after takeoff, drivers also need training and practice on how to deal with an emergency or how to prevent or mitigate a potential emergency from turning into something worse.

It might be a surprise, but preparing drivers for the worst, does not have to break the budget.

For example, numerous emergency driving situations can be gone over in a driving simulator. 

Check with your local community colleges with training programs, truck driving schools, or larger fleets for available driver simulator training.

For example, the Michigan Center for Truck Safety, funded by the State, has a Mobile Truck Simulator Program that they will bring on site to your location in Michigan. There is no cost for using their mobile simulator.

As almost no road is the U.S. is immune from slippery conditions, in addition to simulator training, every driver should undergo hands-on, skid school training.

Again, start locally. If none are convenient, then consider sending your drivers through a hands-on winter driving course.

In review:

  • Emergencies can befall any driver at any time.
  • Drivers need to be prepared for emergencies.
  • The best preparation is training and practice.
  • Emergency training does not necessarily have to cost a lot, but rather should be seen as an investment with real returns, including increased safety and lower insurance premiums.

Summary of today’s Insurance Saving Tips

  • #35 Become your organization’s Safety Evangelist
  • #36 Adopt these Good Inspection Practices
  • #37 Have and Enforce a Mandatory Seat-Belt Usage Policy
  • #38 Ask the DOT Roadside Inspector to write up any passing inspections
  • #39 Help your drivers to prepare for emergencies

More Best Insurance Practices for Better Premiums












More Best Insurance Practices in Our continuing Series

2021 Insurance Saving Tip #30

Use qualified third parties for your required annual equipment inspections

Both OSHA (heavy lifting equipment) and the U.S. DOT (on-road vehicles) have specific regulatory requirements for their respective annual equipment inspections.

In some smaller operations, owners sometimes “self-certify” their annual inspections, primarily as a cost savings. If they are qualified inspectors, this is their option.

Consequently, however, some of these required inspections are not always done on a timely basis, or even done at all.

Why use third-party inspectors (TPIs)?

Some advantages of TPIs include:

  • Better documentation of the inspection
  • Enforcement of required repairs and faults that might be deferred
  • Better regulatory compliance
  • “Another set of eyeballs”
  • Completion on a timely basis
  • No question of the quality of the inspection

Utilizing third-party inspectors for annual inspections, I believe, is an investment that can help lower insurance premiums and avoid further correspondence from insurance underwriters.

2021 Insurance Saving Tip #31

Set up an Inspection Safety Lane

An inspection safety lane can be set up to inspect any rolling stock as it is leaving or returning to your yard.

An inspection safety lane can be used for a quick walk-around, checking tires, lights, and overall condition, or go more in depth, as in a complete pre-trip inspection.

Bonus Tip:

Sometimes an injured employee needs to return to work doing some light-duty tasks.

Helping an injured employee off of workers’ compensation by performing the role of Safety Lane Inspector can be mutually beneficial for all parties, directly affecting insurance premiums.

2021 Insurance Saving Tip #32

Adopt the ‘Inspect to Fail’ Inspection Standard

Some of the most frequent questions asked by drivers include:

  • When does the condition of the vehicle (or load) merit not driving any further due to major or serious faults?
  • When may a vehicle be driven to a repair facility?
  • When is a vehicle roadworthy even though it may harbor minor faults?

Crane operators can have the same questions in their operations.

Solution: Adopt the ‘Inspect to Fail’ Inspection Standard

‘Inspect to fail’ is a best practice, based on the concept that most, if not all, equipment failures and equipment-related safety issues are preventable with frequent thorough inspections and superior preventative maintenance.

‘Inspect to fail’ means, if a part, component or system on a vehicle (or the load or driver) does not meet, or fails to meet any standard of safety, the fault will be corrected before operations commence.

The equipment is, literally, ‘inspected to fail.’

Drivers/operators are held accountable for catching and acting on *all equipment and safety defects.

*Note: Corrective action will depend on the severity of the fault(s), but safety is always non-negotiable.

2021 Insurance Saving Tip #33

Document all inspections

Drivers, crane, hoisting, forklift, and other equipment operators need to complete equipment inspections before use, under both OSHA and DOT Regulations.

These dally inspections should be documented either in writing or electronically.

Why document inspections?

  • It’s required by state and federal law, with few exceptions.
  • “If it’s not in writing, it’s not been done.”
  • It’s a proven best practice

Professional Level:

  • Train your drivers and operators to always note one or two things in the REMARKS section, that they did during the inspection (check oil, tire pressure, etc.)


And always be sure to “Inspect before you check” the form.

2021 Insurance Saving Tip #34

Teach your drivers the Smith System® of Collision Avoidance

What’s the insurance issue?

  • Analytical data insights from firms as Omnitracs suggest some drivers could have taken evasive action to have avoided a major to severe collision but did not.

An Omnitracs’ Accident Severity Model data analysis (2015) has found in some of the most severe collisions* that drivers:

  • Took zero evasive action
  • Could have seen the point of impact 6-7 seconds prior to impact (if awake), and
  • Made no attempt to minimize damage at the point of impact (braked or steered away).

(*Roll-Over, Run-off Road, Head-on, Jack-knife, Side-swipe, Rear-end)

What can be done?

Use The Smith System® of collision avoidance. The idea for Harold L. Smith’s copyrighted system for safe driving came to him in the Navy during WWII.

Smith read a notice on a board in Guam pointing out how many servicemen were dying in car collisions. After the war, Smith researched vehicle collisions and concluded the majority of collisions were caused by “a lack of vision.”

  • The foundation of The Smith System® are The Smith5Keys®
  • The key to safe driving is in managing time and space. More space gives you more time, and more time gives you more space, and more options. This is a fundamental rule of safe driving, no matter your age or level of experience.

The Smith5Keys ®  are designed to provide drivers with the knowledge and skills to create three important things while driving:

  • Space to maneuver their vehicle away from conflict
  • Visibility to detect danger and the potential for conflict with another vehicle or fixed object early
  • Time to react to volatile and complex driving environments”

What are Smith Systems’ ® five keys ?

  • Key 1. Aim High In Steering®
  • As pilots are similarly taught to use their vision to mentally stay ahead of their aircraft, both anticipating and responding to potential obstacles in their flight path, drivers should, “look ahead to where you will be at least 15 seconds into your future.”
  • “A 15-second eye-lead time provides advanced warning and gives you an additional margin of safety.”

Key 2. Get The Big Picture®

  • Again, like pilot training, this rule is about continually maintaining, complete situational awareness when driving.
  • Drivers are taught to not only look far ahead, but to both sides, and to “Check at least one of your mirrors every 5 to 8 seconds.”

Key 3. Keep Your Eyes Moving®

  • While behind the wheel, the best drivers learn not to fixate on a certain point, and to visually focus where needed.
  • “Keep your eyes moving every 2 seconds.”
  • Visually scanning all intersections and rail-grade crossings
  • Looking for errant drivers

Key 4. Leave Yourself An Out®

  • Leaving an out, means always having a place to go, when there is no other place to go.
  • Manage the space all around the vehicle, leaving a safety cushion, to avoid entanglements with others

Key 5. Make Sure They See You®

  • Always be visible to other drivers
  • Lights are kept clean and on for safety
  • Maintain eye contact with other drivers

In Summary

Distracted driving is on the rise. More people than ever are texting, phoning or driving inattentively. There are more drivers taking meds or combinations of meds that could affect their driving. States are issuing operator licenses to undocumented drivers. There are simply more drivers out there than before and the need for advanced driving skills is greater than ever.

Professional drivers need documented collision-avoidance training to help keep our insurance premiums from rising faster.■

5 More Insurance Best Practices to Help Stabilize Your Premiums

Preventing “Nuclear Verdicts”

This week I attended Idelic’s Preventing “Nuclear Verdicts” webinar. Idelic is a driver management platform.

I learned almost any sized trucking company can be involved in a large claim. The possibility of any realistic tort reform in the near future is uncertain. Until that happens, multi-million dollar verdicts, the so-called Nuclear Verdicts, will continue to plague anyone with their own trucks on the road.

What is certain is that the larger trucking companies (who mostly self-insure), would like to raise the $750,000 insurance requirement for all companies. This helps the larger motor carriers because raising the primary insurance means fewer of the large losses would be shifted to “excess” coverage (covering losses over the $750,000 threshold).

Like most political solutions, this one will probably end up as some sort of compromise, resulting in, sooner or later, higher coverage requirements and higher costs. How high is anyone’s guess.

While that’s all getting sorted out, there are things you can do to stabilize your insurance premiums.

One crucial response is to adopt industry best practices—proven techniques to streamline and improve your business.

To succeed in this business, as one business guru said, you don’t need a bigger checkbook, you need a bigger idea book. Not every idea will work because every business is both similar and very different to any other business.

You don’t need a bigger checkbook, you need a bigger idea book.

But if even one in five ideas are productive, then that’s a 20% advantage you have given yourself. Best of all, you can decide whenever you want to implement the new initiative. Proceed at your own pace.

Without further adieu, here are the next five ideas.

5 More Insurance Best Practices

2021 Insurance Saving Tip #25

Relocate to another state with lower rates.

Premiums can vary by state for like or similar operations. While moving seems drastic, and no agent is ever going to make this recommendation, some owners have told me high insurance rates have prompted a physical move of their business to another jurisdiction. Some states, like Florida, are notorious for higher commercial auto insurance premiums, while others, like—surprise, surprise, California—have better competitive rates due to a greater volume of business.

Some fleets have found they can serve their customers better by establishing a beachhead in another state and gradually shifting over their operations.

This can be a real option if you are located near the state border and such a move would not be particularly disruptive to the business, or if you have a dedicated lane ending in a state with lower-premiums.

2021 Insurance Saving Tip #26

Be 100% transparent in your dealings with your insurance partners.

There is ofttimes a fear amongst some organizations that, if they are asked an insurance question, the response always needs to be tailored in a certain way or else something negative will result (higher premiums, increased scrutiny, and the like).

An example is the owner of a new startup, who declares affirmatively in a post-bind safety review, that they have met or exceeded every safety and regulatory standard, each employee is stringently vetted and thoroughly trained, and all equipment is daily inspected and frequently maintained.

Contrast that with the owner with 10, 20 or 40 years in business who has perhaps gone through dozens of reviews. In my experience, I hear fairly candid answers and get honest pushback. “No, we don’t have any training videos. Can’t afford them.”

Who is more believable?

Secondly, some insurance questions might not always apply to your operations. It’s possible the electronic form won’t permit any further progress unless the question is answered.

Thirdly, if you really fall short somewhere, all the insurance company expects, if it’s really something serious, is to correct it in due time. That’s all. No worries.

Top companies do their part and make transparency their cornerstone for better insurance quotes and exceptional levels of service.

2021 Insurance Saving Tip #27

Be aware of all of your risks (exposures) and have a risk management program in place for those risks . . . before insuring them.

Often a business evolves as new opportunities present themselves. For example, a taxi-crane company starts renting telehandlers to contractors (but perhaps doesn’t inform the insurance company). Or a dry van operation adds open deck trailers, then drop deck or even RGN trailers to do heavy haul. In these instances, the risks have increased for both the business and the insurance company.

Agents are not always keen on the particular subtleties of equipment, and the resulting risks/exposures from its operation. In addition, not all agents necessarily have had training in risk management for your particular line of work.

What to do?

• Start by knowing your risks and what needs to be done to address each of them on an ongoing basis. For at least the first six months, adding different types or classes of new or unfamiliar equipment always represents additional risk for your company and its risk partners.

• Be sure to have a comprehensive risk management program or plan in place to manage your risks and exposures, and to lessen your company’s exposure to risk. Take baby steps, before leaping any tall buildings.

Once the risks have been nailed down and a plan is in place to manage each risk, insurance can take over from there, bearing any of the risks which you cannot sustain.

2021 Insurance Saving Tip #28

Ensure vehicles and equipment are secured 100% of the time when they are parked or garaged or not in use.

Did you know one-third of stolen vehicles had the key or fob left inside?

Do you permit drivers to garage them at or near their homes?

Did you know nearly 40 percent of all cargo thefts occurred in parking lots or garages? (2017 FBI Report) Do your trailers have an anti-theft device, if dropped outside of a secure yard?

Does your yard have surveillance cameras including video and OCR or LPR?

Are drivers instructed where to park or never park: i.e., center turn lanes, ends of rows or congested areas in truck stops, blocking lanes, etc.?

Have you invested in adequate anti-theft and tracking devices?

Do you have a second tracking device hidden in the vehicle, including any trailers?

Do you have a parking/garaging policy guiding drivers?

These are a few of the best practices your insurance partner would like to know more about.

In summary:
• Give careful thought and consideration as to where vehicles are, 100% of the time they are parked, positioned, or garaged.
• Invest in anti-theft equipment and tracking devices.
• Security needs to be embedded in your safety culture.

2021 Insurance Saving Tip #29

Have an aggressive equipment replacement policy.

While some business owners can make valid arguments for keeping older equipment on their books, based on minimal usage and superior maintenance, the fact is, there are some serious trade offs to consider. No matter the type of equipment, be it for heavy-lifting or heavy hauling, newer models come with an array of safety devices.

• In many instances, older equipment cannot be successfully upgraded or retrofitted with this new safety technology.
• Even highly-maintained, older equipment can be prone to breakdowns and faults, and replacement parts can be scarce, directly affecting the bottom line.
• While there are always rare exceptions, valid business reasons to keep equipment on the books after 30 years or more, are as rare.

If you need to deploy older equipment:
• Do you have a rigorous inspection and PM program?
• Are all inspections & repairs fully documented?
• Is there a written service plan for each unit?
• Are any third-parties involved in the service process?
• When stored, is the equipment protected from the elements?

Having a great maintenance program is helpful. Having a great and fully documented maintenance program is always better. ■

Thank you for reading this.


5 Commercial Insurance Best Practices to Help Lower Your Premiums

What is the best kept business secret in America?

Over the years I’ve picked up nuggets of business insights. Some like the use of business ratios were introduced formally in school, some informally from media, interviews, or other sources.

When I was young, Shell oil hit struck oil on the family farm (Taratuta 34A) in the north-east corner of what is known in geologic terms as the Michigan Basin. We were going to be rich!

Unfortunately, after several drilling attempts, due to high gas pressures and the likelihood of a blowout, the well was sealed off, capped, and cemented, and life became ordinary again. But it was a nice dream while it lasted.

One thing I did learn, at that time from a wildcatter, was that more money went into the ground searching for oil, then came out of the ground, in the form of profits. Yes, back in the day, the oil business could be quite speculative.

I later heard this same concept from a stockbroker: investors can easily put more money into stocks then they ever take out—not a good strategy to build wealth. This same theme would emerge, again and again. Other examples run the span from the airline to biotech industries.

For example, in 2007 Warren Buffett mentioned in one of his famous letters to stockholders, that the airline industry, as a whole, is unprofitable, saying, “if a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down.” He then later forgot his own foresight, buying billions of dollars airline stocks in 2016, only to quickly dump all of them at the onset of the Covid pandemic.

The fact that many businesses are marginal and struggle to break even is no secret. Most famers, for example, need to work full time jobs outside of the farm. The book publishing industry gambles on dozens of new authors, before one might hit the bestseller list.

The real secret, the best kept business secret in America, I believe, is that profitable businesses strive to incorporate proven best practices in their operations. 

Are there best practices for commercial business insurance? From my experience, I would say, yes, there are. There are proven ways that will help lower or at least stabilize the cash outlays for your insurance, without sacrificing coverage. And many don’t take a lot of time or effort to implement.

The cost of insurance is not fixed. They are things you can do to make the cost go up. And there are things you can do to lower or stabilize the cost. Here are five more commercial insurance best practices, in our continuing series.

5 Commercial Insurance Best Practices to Help Lower Premiums

2021 Insurance Saving Tip #20

Retain legal counsel who can provide you with proactive legal services.

What are proactive legal services?

If you own an asset like a building, machine, or vehicle, you likely do your fair share of preventative maintenance (PM). PMs are seen as a good investment, not an expense.

Likewise, proactive legal services are preventive, providing legal guidance to avoid potential legal issues from happening, or having plans in place to mitigate conflict, if such issues arise.

Proactive legal services can help with:
• Regulatory issues
• Reviews of contracts
• Risk reduction

For example, some insurance companies may have “Lawsuit Limitations” in the policy (in a provision labeled “Suit Against Us”) of one year from the time of the event in question, while a claim is being adjusted. Proactive legal counsel could help preserve your rights before the deadline expires.

The end goal of proactive legal services is to avoid potential conflicts and costly litigation. Ask your legal counsel if they can provide you with proactive legal services or recommend someone who does.

Disclaimer: This is not legal advice, only insurance-savings information. Seek any legal advice from qualified legal counsel.

2021 Insurance Saving Tip #21

Firm up your insurance firmographics.

What in the heck are firmographics?

Yes—firmographics is a real word. Firmographics describe businesses and organizations like demographics describe people. Firmographics help insurance underwriters and actuaries to stratify risk by grouping it together, resulting in competitive quotes.

‘Firm up your insurance firmographics’ means to verify the information your insurance company has is correct.

For example, some businesses have several lines, which can fall under different industry codes. Fact: According to Verisk, a firmographics provider, “52 percent of high-level industry codes (defined by 2-digit NAICS) are typically inaccurate in an insurer’s book.” (July 2020 ISO survey)

Bad codes can result in under or over-charges of premiums. If you are undercharged, upon discovery, insurance companies can go back several years later and recoup the money. Overcharges directly affect your bottom line.

  • Be sure to check how your organization is coded. Update the information, if necessary.
  • Carefully go over any confirmation paperwork. Sometimes property, equipment, or vehicles can be listed on the policy for years after having been taken out of service.
  • Look at your list of drivers. Is it up to date and current?
  • Does your website or Facebook page reflect current operations? Insurance companies get information from many different sources. Update them, if necessary.

Some previous tips to ensure accurate insurance information include: (#4) Verify loss runs every six months, (5) Read the policy/dec sheet, and (12) Make reasonable disclosure to all insurance inquiries.

2021 Insurance Saving Tip #22

Hire drivers based on their driving experience.

According to a recent study driving experience is more important than a driver’s age when considering risk. Over 9,000 drivers were studied to determine how age and experience affect driving safety and performance.

The study noted, inexperienced drivers (with one year or less experience) have higher “crash rates, crash involvement, and moving violations, regardless of age.” And inexperienced over age 55, in fact, have even higher crash rates and greater “odds of being involved in a crash than their younger, inexperienced counterparts.”

The study recommended companies have a training strategy, mentor inexperienced drivers, and use technology as Lytx DriveCam system to coach and train drivers.

Many insurance companies require one or more years of driving experience. Some (for example, Protective) require proof of attending a CDL school, with at least 24 hours of in-cab training.

Underwriters have known this for years: experience matters, and drivers with at least one year of verifiable driving experience at hire can help reduce your premiums.

2021 Insurance Saving Tip #23

Choose a real human over a bot when interacting with insurance companies.

Consulting firms are currently pushing the concept to insurance companies that, ideally, 50% of their business should be totally automated. This is sold as another business best practice.

Part and parcel to insurance automation and digitization is the deployment of so-called digital employees, electronic avatars, or ‘bots,’ which are apps using conversational artificial intelligence (AI) or natural language processing. The apps or bots can gather information and perform certain tasks, saving labor costs.

Can a bot be deposed in court? What can a bot recall under cross-examination? And in this age of rolling brownouts and blackouts, and failed backups, what happens if critical information is lost or insurance policies cancelled? By then, likely the consultants will be long gone. Who will be left holding the bag?

For critical insurance information and tasks, make it your policy to deal primarily with humans as much as practically possible. This can help in keeping misunderstandings from happening and your insurance premiums from rising.

2021 Insurance Saving Tip #24

Have a driver pet policy.

Pets in a cab are seen by plaintiff attorneys as a possible driver distraction in a post-crash investigation, according to transportation counsel and legal expert Cassandra “Mad” Gaines, Esq.

This suggestion doesn’t mean pets in truck cabs should be outright banned, according to Gaines. Drivers keep pets as companions, sometimes as early-warning systems at night when parked in peripheral or unlit locations. In most cases, the benefits outweigh the risks.

Gaines advises a driver’s pet policy should:

  • Favor smaller pets over larger pets.
  • Include a barrier to the driver cockpit area so the pet cannot become a driver distraction when the vehicle is in motion.
  • Deploy outward/inward facing cameras

Driver pets are a reality in transportation. A sensible pet policy can help keep your insurance premiums from rising. ■

Thank you for reading this. What ways have you found best to save money on your insurance?


5 More Ways to Lower Your Commercial Insurance Premiums

Why? Why? Why?

Many fleet owners have come to dread opening that email or envelope showing their upcoming commercial auto insurance premiums. Especially if they have not had any major claims, have good equipment and drivers, low turnover and strong financials.

Why are rates so high? Why do premiums keep rising? Why is this happening to me?

Bottom line: rate increases almost always are due to increased insurance risk. The parameters of insurance risk vary by region, kind of operations, and predictability, among others.

If most companies are average, then, on average, everyone would expect about an average year-to-year premium increase of about five per cent. This would seem reasonable, practical, and easily affordable.

The world, however, is cyclical in nature, and so is the world of insurance. Insurance is affected by economic cycles, weather patterns, regional trends, technology, and so on. All of these factors will have some effect, sometimes large, sometimes small, on premiums.

The key thing, then, to keep insurance premiums stable or from rising to an unreasonable level, is to control those things you have direct control over.

I have worked on the loss-control side with many operations in a number of industries and have found it is always helpful to differentiate yourself. Differentiation means doing the few extra things which will improve your risk profile and make your organization stand out from the others.

In some cases, it means doing a few more things that you probably should be doing anyway. In other cases, it might mean adopting an new attitude or mindset, taking a fresh look at things with an eye to improvement.

I grew up in trucking. I’ve owned trucks. Looking back, I can say this with certitude: there were some things we did well, there were some things we did the hard way—not from a lack of trying, but from simply not knowing what we didn’t know.

So we continue on with our series of proven ways to level up your insurance game.

Five More Insurance Saving Tips

2021 Insurance Saving Tip #15

Ask your agent if you can get a discount for being a member of a business, professional, or trade association.

If you operate speciality equipment like cranes, concrete pumpers, oversized-load hauling equipment, and the like, that requires adhering to standards beyond the norm (usually requiring special riders or endorsements to your policy), chances are the insurance company may offer a membership discount, if you join the representative association for your industry.

Sometimes this question will be in the insurance application.

Bonus Tip 1: Pay attention to all of the questions on the insurance application. The insurance underwriters do. The questions will tell you what things are important. No questions are there to fill up space. And be accurate in your responses. Never simply turn in an old application.

Bonus Tip 2: And always ask your agent for a list of available or perhaps new discounts. The insurance industry is changing and is in the midst of a huge turnover in staffing, combined with digitization of business processes. Don’t let any possible discounts fall through the cracks because of this change.

As successful fitness entrepreneur Jennifer Cohen says: “Be bold. You need to ask for what you want. Period.”

2021 Insurance Saving Tip #16

Move up the insurance food chain: Work with a broker instead of an agent

If it’s time to do some serious cost-containment on your commercial insurance, and you are looking to change agents (or your agent has moved on, retired, etc.), consider working with a broker, not another agent.

Why work with a broker?

One primary difference is that the agent works for the insurance company, while the broker works directly for you. The broker uses their expertise and experience to get you the best possible rates. The broker’s recommendations are unbiased and favor the buyer, the insured, not the insurance company, Brokers can provide you with best value in insurance coverage.

Insurance brokers represent multiple insurance companies. The broker cannot “bind” a policy but will connect you with an insurer or insurance agent to complete the process. And likely a better rate.

You can ask your agent if this would be helpful, or contact your insurance company directly for a list of brokers they deal with.

2021 Insurance Saving Tip #17

Here’s a big ‘don’t’ when getting an insurance quote: Never ask more than one agent or broker for a quote.

(The only exception is having another agent/broker for highly specialized insurance your regular agent/broker cannot provide. But this same rule always applies . . .)

Why is that?

Attempting to utilize several agents at a time, or, if get your insurance through a broker, several brokers at a time, is not at all helpful in getting a good, solid quote. Most agents and brokers pride themselves on their relationships with customers. They will do everything in their power to make sure you get their best possible quote. Attempting to play one against another is a zero-sum game that will strain the relationship, and indeed can work against you in the long run.

It’s best to always follow the time-honored tradition in insurance of having only one agent or one broker at a time. A good agent or broker is worth their weight in gold and an asset to your organization.

As Napoléon Bonaparte said, “If you issue an order, then a reorder, you will end up with disorder.” This same observation applies when procuring insurance. Be strategic. Stay in the long game.

2021 Insurance Saving Tip #18

Never finance your insurance policy directly though the insurance company.

Why is that?

Here are some good and valid reasons to arrange outside financing for commercial insurance:

  1. Outside financing will generally cost you less, saving money.
  2. If a payment is late, you can be cancelled. I’ve seen some companies in Excess & Surplus lines (E&S) add on a 25% penalty for early policy cancellations. (Read all the paperwork!)
  3. If you do get cancelled, this can make it harder (more expensive) and more difficult to find insurance. Every insurance company asks if you have been cancelled. It’s a red flag!
  4. If you do get cancelled for nonpayment, the insurance company will very likely not continue the policy.
  5. If you drop vehicles due to a change in operations, you might be paying the finance company for months before everything gets all sorted out. This can really impact your cash flow.
  6. Breakdowns, loss of a good customer, and other factors can push any company into a hard place, making the monthly commitment to the insurance finance company very difficult.

If at all possible, do your best to keep insurance and the financing of the insurance separate and apart from each other. It will save money and could even save the business . . .

2021 Insurance Saving Tip #19

Do not haul cannabis. Period. Even if it is considered state “legal”

Now, why would that be?

We’re talking about the insurance angle here. Most commercial insurance policies clearly state they will NOT underwrite any illegal activities. A policy is simply a contract.

The sale and distribution of cannabis is federally illegal in the U.S. For some, perhaps 15% of the population, cannabis is known to be an addictive substance and sales are exploding.

It’s a fact: insurance companies are finding they can walk away from cannabis-related claims due to the federal illegality of cannabis and the courts will stand behind them.

It’s perhaps best to simply avoid problems: Stay away from hauling cannabis.

See: Why Your Cannabis Contracts May Be Unenforceable Even if State Law Says Otherwise

Disclaimer: This is not legal advice, only insurance-savings information. Seek any legal advice from qualified legal counsel.

Thank you for reading this.

Five Tips for Saving on Commercial Insurance

Can one really save on commercial insurance? Is this for real?

Insurance savings are real and can be had, but like anything else worthwhile, require both time and effort. Larger companies devote departments full of risk managers to help lower their risks (and costs) of doing business.

But there are things smaller operations can do to lower their insurance premiums. These are neither extraordinary nor extraneous actions, but usually things you don’t know about, things no one has told you about, or things one learns after repeated batterings or sometimes failures.

These tips are from a series published on LinkedIn. Their purpose is to help save you money (if that’s your goal).

Please note: I am not an insurance agent. I do not sell insurance. This blog is for information purposes only. I am not an attorney. This blog is not legal advice. Please use your discretion in applying any information to your particular situation and circumstances. Results may vary. 

Today’s Five Insurance Saving Tips

2021 Insurance Saving Tip #9

Have a safety “elevator speech” for your company or organization.

An elevator speech is a brief overview of what you or your organization are about, short enough to present during an elevator ride. It is a means to introduce yourself or organization to new career and/or business connections

A safety elevator speech is talking points about what you or your organization are currently doing in the area of safety. It could include activities in the last year, current initiatives, or those planned for the near future.

Many times company representatives or owners are:
—shy or hesitant when talking about their safety program(s)
—often forget to bring up key points they would like to present

Use your brief safety elevator speech with:
■ Insurance agents, brokers, loss control inspectors or risk management representatives, Underwriters
■ Your staff, safety personnel, company superiors, and others

Memorize your safety elevator speech. It can come in handy when you least expect it.

New: Digi-Tip

This next one is a new insurance tip for our digital age. Insurance companies are streamlining operations, dropping agents, or selling directly. As such, what is missing is the human touch. Beware! In this tip I cover a potential risk you need to be aware of in filling out online electronic forms.

2021 Insurance Saving Tip #10

Use Extreme Caution When Filling Out or Using Online Insurance Forms

There is a big push by insurance companies to automate and digitize their business processes. As there is less and less face contact, insurance companies are using a new suite of tools to determine, when filling out online forms, if their customers are lying or engaging in fraud.

It’s called behavioral signaling. It’s not only what you put down, but how you do it.

Do you hover over a question before answering it? Do you cut and paste information? Is information later changed or deleted?

When filling out e-forms I recommend to first read the form, gather the required information, then fill out the form as accurately (and quickly) as possible. Then proof read it, again, and make any necessary changes.

Anything else could result in potential additional scrutiny or even a possible decline in issuing a quote.

2021 Insurance Saving Tip #11

Investigate all accidents and incidents, no matter how small.

Accident/incident investigation can identify workplace hazards and help in creating corrective action plans to prevent future occurrences. In some jurisdictions, it’s the law.

In today’s safety environment, the terms accident and incident are used interchangeably, as it is felt most accidents are preventable.

We want to investigate the small stuff because: a.) it can be an indicator or predictor of future events, and, b.) staff needs to be made aware of the importance of workplace safety.

Be sure to follow a checklist. Your insurance agent may have an investigation checklist and/or other helpful forms. A generic checklist can be found in the link below.

If a safety event happens, don’t wait. Get as much information as soon as possible. Try to determine the root cause. Then follow up with any corrective action, if appropriate.

2021 Insurance Saving Tip #12

Make a good-faith effort to answer all of your insurance company’s questions and keep them informed of any changes.

Sometimes things change quickly. Assets are added or deleted. New drivers are hired. Losses occur. The list goes on.

A policyholder (insured) has a duty and obligation to disclose any information a reasonable person should have known would have been relevant to the decision of the the insurance company (insurer) whether to accept the risk.

For example, when filling out an application, if it is known that a company driver has lost their driving privileges, but the company doesn’t inform the insurance company (or continues keeps the the driver on the road), this could be considered a failure to make a reasonable disclosure.

For serious non-disclosures, insurance companies have a provision in their policy to add on additional premiums on past or future policy years, or even cancel the policy outright.

Always make a ‘reasonable disclosure’ when providing insurance information.

2021 Insurance Saving Tip #13

Have an organizational policy which encompasses safety events from start to end.

What’s in a good company “accident policy?”

■ Staff need to be trained what to do in the event of an accident.
■ There should be accident kits in all vehicles and updated first aid kits on site or on location.
■ Staff should know what to do or not do when taking photos.
■ Annual refresher training is a must.
■ Keep a list of regulatory contacts, if any government reports are later required.
■ Some companies immediately do a legal review with their counsel, if appropriate. From time to time this possibility should be reviewed with counsel, as well as your policy.
■ Accident policies should aim to preserve life, property, and evidence.
■ When others are at fault, know what your insurance company needs to pursue a possible subrogation claim, so your insurance does not go up.

2021 Insurance Saving Tip #14

Check with your agent if you can get a “shareholder discount” on your insurance for owning any stock in the insurance company or its subsidiaries.

It could be worth your time and effort to buy a share or two.

Bonus Tip 1: It’s always a good idea to check with your agent and broker for any and all available discounts. Sometimes, in the wacky world of insurance, doing little things like this can result in huge savings over time.

Bonus Tip 2: Sometimes you can get discounts for doing things that seem counterintuitive, like adding drivers to get into a different category. For example, a key driver has some points and you can’t fire him. Adding additional drivers to your driver pool with stellar driving records might actually lower your premiums.

Thank you for reading this. What ways have you found to save money on your insurance?

More Insurance Savings Tips for 2021

Up, Up, and Away . . .

Rates in 2021 for commercial insurance seem to be rising faster than a runaway balloon.

But all is not lost. There are things you can do to help lower your insurance premiums. I’ve been posting a few on LinkedIn. I’ve owned a small fleet of large vehicles and probably overpaid for my insurance like everyone else.

But after doing loss control reviews for a number of years, I’ve talked with scores of top fleet owners in various industries about their best practices. These are things I wish someone had told me.

Please note: I am not an insurance agent. I do not sell insurance. This blog is for information purposes only. Please use your discretion in applying any information to your particular situation and circumstances. Results may vary. 

More Insurance Saving Tips

Here are some more random insurance savings tips.

2021 Insurance Saving Tip #5.

Read the insurance policy.

Okay, it’s pages and pages of gobbledygook, part legalese, part esoteric insurance terms. But the policy is a contract . . . a contract which specifies what the parties need to do to remain in good standing with each other.

Some insurance policies follow a standard format. Some, like Inland Marine, covering property or attached equipment, which is mobile, can have their own idiosyncrasies, specific to that insurance company, and should be carefully reviewed. Never skip reviewing an Inland Marine policy.

If you don’t read the policy right away, be sure to always review the “dec sheet” or “Declarations Page” which is a one or two page summary of the policy, names the insurer and insured, and indicates the type of coverage in that particular policy. Make sure all of the information is correct.

Contact your agent immediately, if you have any questions about your policy. It will be too late after a claim . . .

2021 Insurance Saving Tip #7

Expand your “network.”

Networking with personal and business contacts and acquaintances is the number one way people exchange valuable information . . . information that matters.

Track your contacts. Reach out to them and help them, if you can. It’s not about you—it’s about them and building good will by helping them meet their goals and objectives.

Be a joiner. Join any association which represents your interests. Become a member and stay active.

What does any of this have to do with insurance? Some insurance companies will ask you point blank: What associations is your business affiliated with? Membership does have its # benefits . . . like staying aware of coming industry changes, new regulations, new standards . . .

Bottom line: Your network is your “net worth.” But it doesn’t happen overnight. Start building your network now!

021 Insurance Saving Tip #8

Take advantage of expert help to lower risk and improve your safety profile.

Some of the safest companies I have reviewed (close to perfect risk profiles), sourced their safety needs to specialized safety experts. If they had trucks, they used a DOT expert to guide their safety and compliance program. If they worked in construction, they hired an OSHA expert. If they had employees, they either provided in-house training or hired a safety-training expert.

Such experts can sometimes be found at local, state or national associations, dedicated to your respective industry or sector.

Your insurance company may provide these expert safety services at no cost through their loss-control department or outside contractors. In Texas, for example, this is the law.

Be sure to ask your insurance agent what “loss-control” expert assistance they can provide or safety and training resources they have available.

Thank you for reading this. Be sure to subscribe for more money-saving tips. 

Random Insurance Savings Tips for 2021

Top Insurance Tips Can Save You More than Money . . .

Since the beginning of the year I have been listing some ways you can save money on commercial insurance premium on LinkedIn. As not everyone has a LinkedIn account, I decided to post a few of them here.

Please note: I am not an insurance agent. I do not sell insurance. This blog is for information purposes only. Please use your discretion in applying any information to your particular situation and circumstances. Results may vary. 

It’s no secret . . . commercial insurance for many organizations has been going up about 5% every year. Add in some claims and the premium can rise 10%, 20% or even more. Affordable insurance is a real issue for many businesses and organizations.

Not everyone is aware of the fact that almost two identical organizations, about the same size, with approximately the same revenue and level of risk will be paying different premiums. Sometimes radically different amounts in their premiums, even twice or three times the difference. This makes some folks really angry when they talk with friends or acquaintances and find they are the ones who are paying much more.

But not everyone is aware of the fact that there are things they can do, certain actions they can take, which will lower their insurance premiums. As an added bonus, doing these things and taking some of these actions will also result in a better, more efficient and profitable organization, beyond any potential insurance savings.

In any case, I’ve worked with business people with 30, 40, sometimes with over 50 years of business experience who have shared some things they learned over decades of dealing with insurance. Some are simple. Others take a little effort, but the savings are worth it.

Top Insurance Saving Tips

So here we go . . . Here are a few random “insider” insurance savings tips:

2021 Insurance Saving Tip #1.

If you haven’t “shopped out” your insurance needs in the last two years, you won’t know how much you could be saving. Many organizations put insurance on the back burner, not realizing in a competitive market, rates can change in their favor. It’s a good policy to get a new quote every few years.

Bonus Insider Tip: Sometimes merely getting a new quote can defer an increase in premium.

2021 Insurance Saving Tip #3.

Invest in safety. Be proactive—not reactive.

Most work-related mishaps are preventable. You cannot afford a “static” safety program. Only about 20% of companies really get it . . . and that’s usually after having experienced a preventable mishap or close call. Learn from their mistakes and work for continuous safety improvement.

Bonus Insider Tip: Always have a new safety initiative in the works.

2021 Insurance Saving Tip #4.

Review your insurance loss runs every six months.

Insurance companies are behemoths and don’t often make mistakes. But when they do, a small mistake on their end can impact your premiums. A bigger mistaken can even result in a notice of cancellation.

Under state law, you are legally entitled to a copy of your loss runs in 10-15 days, depending on the jurisdiction.

Bonus Insider Tip: Be sure the information “on file,” at the insurance company concerning your losses is correct, whether you have had any losses or not!

Thank you for reading this.

Top ELD Violations to Avoid

Top ELD Violations

Top ELD Violations (Used with permission from CTSE, link below)

The Little Things Make a Big Difference

When it comes to keeping electronic logs, the little things make a big difference. Or as at least one professional driver once told me, there are no small mistakes in trucking.

Since  April 1, 2018, the ELD “enforcement deadline,” all ELD violations are reflected in a motor carrier’s Compliance, Safety, Accountability (CSA) score. The violations fall off after two years, improving the score. This means it’s important NOT to incur these violations as your company can be stuck with them for a while.

Every violation is assigned a ‘violation severity weight’ by the DOT. For example, operating with a device that is not registered with FMCSA (49 CFR, Part 395.22A) has a violation severity weight of 5, on a scale of 1 to 10.

Severity weights help differentiate varying degrees of crash risk associated with specific violations.

All logging violations are considered fairly serious.The good news is that they are all controllable, and hence preventable.

What does your Insurance Company Expect?

All violations and crashes are funneled by the DOT into one of seven Behavior Analysis Safety Improvement Categories (BASICs). A higher BASIC score reflects negatively and several BASICs with higher scores can trigger DOT safety compliance reviews, which in turn can result in a negative safety rating (like “Conditional” or “Unsatisfactory”).

The BASICs are not only used by the DOT for enforcement purposes, but also by private industry as an indicator of safety. Shippers and brokers use these scores to vet motor carriers. Trial attorneys like to pound the table with a carrier’s high BASIC scores, if a company is involved in a crash, even a minor fender bender.

And insurance companies use BASICs as a risk indicator.

Each BASICs can range between 0 to 100%. For insurance purposes, every individual BASIC should not be much over 20%. Any BASICs in an “alert” status are not acceptable to the insurance industry. This cannot be emphasized enough. Again, a high BASIC and a fender bender can result in a policy cancellation or jump in premium.

For a small company or a new company, staying under a 20% threshold for any BASIC is very difficult. If a carrier has one out-of-service violation from two roadside inspections, on paper it looks bad. The only way they can improve their situation is by having several more “clean” roadside inspections.

What’s the Solution?

The best cure when it comes to navigating the DOT’s regulatory system, is prevention. Drivers need to know how to use their ELDs, keep essential and supporting documents on the truck, keep paper logs to back up the ELD in case it fails, and know what they are doing when they use their ELDs.

Top Tip: Stop at rest-stops before any open inspection stations and do a quick walkaround, checking tires, lights, logbook status, etc. Fix anything before going through the roadside inspection station. You will likely need to fix it anyway, and don’t need a possible fine and citation, DOT scores in alert status, and higher insurance rates. ■

Thank you for reading this.

Thanks to The Center for Transportation Safety Excellence for use of their graphic.

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John Taratuta, Insurance Safety & Risk Engineer admin@part380.com

CDL Entry-level Driver Training (ELDT) Rule

truck diver

What is the Entry Level Driver Training Rule (ELDT) for CDL truck drivers?

As of Feb. 7, 2022 anyone who obtains a Class A or B Commercial Driver’s License (CDL), or a School Bus (S), Passenger (P), or a Hazardous Materials (H) endorsement needs to have formal training at a listed training provider.

Are there any exceptions to the ELDT rule?

Your state may allow for the following circumstances:

  • Exception for certain military drivers. §383.3(c)
  • Exception for farmers, firefighters, emergency response vehicle drivers, and drivers removing snow and ice. §383.3(d)
  • Exception for drivers of “covered farm vehicles.” §383.3(h)
  • Drivers applying for a restricted CDL (Alaska- §383.3(e)), farm-related service industries §383.3(f), and certain drivers in the pyrotechnic industry §383.3(g)

A understanding of your state’s motor vehicle code is essential to know both the exceptions from training, if any, and the limitations of a CDL without training.

Essentially, for insurance purposes, having at least the minimum required training is looked upon by insurance underwriters as favorable to obtain reasonable insurance rates. One major insurance company likes to see at least 24 hours of hands-on, one-on-one training, plus as much or more in-class training.

Where can the required training be obtained?

The training provider needs to: 1.) meet the FMCSA’s eligibility requirements and 2.) be listed on FMCSA’s Training Provider Registry.

Thank you for reading this. ■

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John Taratuta, Safety & Risk Engineer, 989-474-9599



Top Tip of the Day: Block Heaters in Winter

Winter Driving Tip


Block Heaters

Block heaters are a must in northern regions.

Plug in the block heater while the engine is still warm.

In extreme cold, install two block heaters.

Avoid using ether for cold starts. Use as little ether as possible, about a one second spray into the air intake, while the engine is turning over.

A block heater needs to be mounted as low as possible—at least 2” below the point where the heated fluid will enter the motor or fluid reservoir.

A block heater will provide many years of service with little danger of the element burning out—provided there is good circulation of the coolant at all times.

There is no “pump” inside a block heater. Instead the coolant flows based due to natural convection.

Thank you for reading this. ■

Lower Your Commercial Truck Insurance


Commercial Truck Insurance Can be Expensive

Frequently fleet owners frequently express their concerns to me about their rising insurance premiums. Insurance for heavy commercial trucks can carry a heavy price tag. This article will detail a number of ways to lower your insurance, from a business perspective.

Axiom 1: Trucking is a Business

The purpose of engaging in trucking is to provide a service to a customer to make a profit.

Axiom 2: Business is a Long-term Proposition

Accountants are taught the basic concept of a business as a “going-concern.”

Going concern is an accounting term for a company that has the resources needed to continue operating indefinitely until it provides evidence to the contrary. This term also refers to a company’s ability to make enough money to stay afloat or avoid bankruptcy.

It can literally take years to realize a business return-on-investment (ROI), if ever. Most businesses, however, are marginal or even not profitable. Are you in it for the long haul?

Axiom 3: Most businesses fail before the owner or owners intended. Trucking is no exception. 

Axiom 4: A Business “Mindset” is Required To Survive or Thrive in Trucking

Extraordinary business skills are not required in a business like trucking. A good basis in ordinary business skills is necessary, including a business mindset.

A mindset is a belief that orients the way we handle situations—the way we sort out what is going on and what we should do. Our mindsets help us spot opportunities, but they can also trap us in self-defeating cycles.

Mindsets aren’t just any beliefs. They are beliefs that orient our reactions and tendencies. They serve a number of cognitive functions. They let us frame situations: they direct our attention to the most important cues, so that we’re not overwhelmed with information. They suggest sensible goals so that we know what we should be trying to achieve. They prime us with reasonable courses of action so that we don’t have to puzzle out what to do. When our mindsets become habitual, they define who we are, and who we can become. Gary Klein Ph.D.

A basic business mindset might include acknowledging from time-to-time the need to review and control all of your costs, including insurance.

Axiom 5: You can Lower Your Commercial Truck Insurance Premiums

Insurance is about risk management or properly managing your risks. It’s not the job of the insurance company to run your business or tell you what kinds of risks you should or should not take. They would not know where to start.

The insurance company is happy to rate your level of risk, if you are in an industry segment they insure. Certain transportation segments (i.e., log hauling, heavy-duty towing) have fewer insurance companies interested in them, so premiums are much higher.

Some insurance companies have a fully resourced Loss Control department to help you control adverse events as much as possible. Some are weak in this area. In any case, don’t abdicate your responsibility to protect your bottom line.

How to Lower Your Premiums

The biggest risk in trucking is the driver. A major mistake is to hire drivers who may have a questionable driving record, are not properly qualified, or lack experience. Sometimes we hire a friend, family member or acquaintance. That’s okay—if they are able to safely do the job.

Soon new CDL drivers will have to go to truck driving school. Do you look for trained drivers when hiring? Do you road test or assess their skills and knowledge in other ways?

The second biggest risk is not properly monitoring the driver. Most truck insurance companies are now expecting some level of telematics be installed on all trucks. One company I work with reserves the right to access the telematics at any time. How do you monitor driver behavior?

There are other risks in no particular order that also concern the insurance company:

  • Do you train and develop your drivers? Are training records available?
  • Are your safe drivers recognized or even rewarded?
  • Do you train and develop your safety staff?
  • Do you have a relationship with business professionals who can help you? (Attorney, CPA, Safety Consultants, Trainers, and others)
  • Do you have a good relationship with your agent/producer or broker? Do you know who your underwriter is? Help them to help you.
  • Do you know what to do if you are unfortunate enough to have a claim? What not to do? Ask your agent for a complete checklist before you might need it. Don’t rely on an 800-number tied to an overseas location.
  • Do you operate top-notch equipment?
  • Do you have a top-notch maintenance program?
  • Do you stay up with current driver safety technology?
  • Does your company have membership in, or support any safety associations?
  • What safety-initiatives have you taken in the last year? What safety-initiatives do you have planned? Don’t wait for someone to rescue you. No one is coming.
  • Are you “defendable” in court? Do you keep excellent paperwork? Are there high-quality dashcams in all your trucks? Can you beat a questionable claim, if necessary?
  • Are you cooperative with your insurance company? Is insurance or risk management something you approach seriously? Do you or your staff respond to inquiries in a timely and reasonable manner?
  • Do you monitor your CSA Safety Profile?
  • Are all your CSA BASICs not much over 20%? Any BASICs in an “alert” status are not acceptable to the insurance industry.
  • Top tip: Shop around every renewal. It may not lower your premium, but this simple act can sometimes keep it from rising.

Approaching your trucking business with a business and risk-management mindset will go far to help lower your insurance premiums and ensure the continuation of your business as a ‘going concern.’  ■

Thank you for reading this. Opinions expressed are my own and may not reflect any positions of the clients or companies I work with.

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John Taratuta, Safety & Risk Engineer, 989-474-9599

Free 2019 CCJ Air Brake Book

Air Brake Book Tenth Edition

Introducing the 2019 CCJ Air Brake Book

Commercial Carrier Journal is offering a free .PDF of the 2019 CCJ Air Brake Book.

While the basic concepts of air-brake systems have not changed, this edition covers new brake technology, preventive maintenance practices, an outline of the all-new 2019  Commercial Vehicle Safety Alliance (CVSA) air-brake out-of-service criteria and Air Brake Pushrod Stroke guidelines used by law enforcement.

In short, this guide is must reading, if you own or operate commercial motor vehicles with air-brake systems.

Stay up to date with the latest information on truck air brakes.

Stay alert—stay alive! ■