Recommending risk mitigation methods that work

Modern technology and a few additional management measures can help alleviate the risks commercial vehicles can bring to businesses. Consider these tips to offer insureds when discussing their commercial vehicle operations:

Telematics: Technology offers insurance professionals a very effective tool in understanding driver behaviors and providing rates that reflect them. A small transmitter that gathers and reports data is placed inside the vehicle sending updates to the business owner and insurance company on various dangerous behaviors including hard breaking, speeding and more. Though telematics can have an adverse effect on premiums when operators do not have a keen handle on best driving practices, the benefits should outweigh the negatives here. The data offers business owners the chance to address unsafe driving behaviors and to work toward recovering a safe driver reputation. When considering telematics, agents and brokers should talk to business owners about partnering with a telematics company that understand their needs. Azuga, for example, a partner of Pennsylvania Lumbermens Mutual Insurance Company (PLM), offers a wide range of fleet management solutions, designed to help promote safety, increase efficiency and better understand a fleet's specific risk exposure.
Train and keep training: Training is the most important tool in ensuring drivers are prepared for any potential situations while on their route. Most businesses have a training program for when employees start a new position, but commercial auto operators should undergo regular training modules and refresher courses. Business owners should consider requiring rotating training sessions on emergency protocol, general rules of the road, defensive driving strategies and more. For example, when driving through a storm, drivers should be equipped with best practices such as increasing their following distance, turning on their headlights and hazard lights and knowing when to pull over and wait it out.
Communicate: Though telematics can be valuable for reporting driver data, the driver must understand how to interpret the data to see how they can make improvements. Business owners need to have a clear line of communication with their drivers about driving habits, discuss both their strengths and weaknesses and allow drivers to express where they may need assistance or better understanding. Open communication can not only limit the chance of a potential claim, it will also help business owners trust that their drivers know how to stay safe.

Finally, just as business owners need to communicate with their drivers, agents and brokers need to ensure they are talking to their policyholders with commercial vehicles and commercial auto fleets about safety, risk mitigation and more.

Mike Zdrojewski of Pennsylvania Lumbermens. (Credit: Mark Davitt)

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