Working in agriculture is an inherently dangerous job, increasing the risk for workers’ compensation claims. (Credit: Don Landwehrle/Adobe Stock)
Grain trucks. Tanker trucks. Buses for workers. Farm equipment like combines, self-propelled pesticide sprayers and planters. Expensive vehicles and equipment like these need experienced drivers and operators to keep the critical farming sector running like a well-oiled machine.
Unfortunately, recent trends show an increasing labor crunch that’s raising risk exposures for agricultural companies. According to the American Trucking Associations (ATA), many experienced commercial drivers are retiring, and fewer young people are choosing an on-the-road career. Fleet owners regularly have been reporting that they can’t find experienced drivers and are having to hire less-skilled drivers.
Agents and brokers can help their customers understand this emerging problem, how it affects their risk profile and insurability for commercial auto, workers’ comp and other agribusiness coverages, and how agents and brokers can help.
Labor shortage
The nationwide trucking shortage could top 169,000 by 2030, predicts ATA. Smaller operations such as agricultural companies may be affected most, because they can’t always compete with higher-paying jobs elsewhere.
Driver job applicants themselves may pose challenges. Finding reliable workers who show up for their shifts can be difficult. Plus, in states where marijuana and other recreational drugs are legal, finding applicants who are willing to commit to a farm’s safety-oriented no-drug policy can be complicated.
Then there’s the regulation layer. States have different commercial driver’s license (CDL) requirements for trucks transporting produce, agricultural products or livestock. One factor is how far the trucks need to travel. For example, if the truck regularly travels 150 miles or less, a CDL may not be required. CDLs may be required, however, for larger and longer hauls or if materials are hazardous, such as farm chemicals.
As for current farm drivers, a sale or merger can bring on employees with past violations or put them in the wrong job. Inheriting such practices can increase a farm’s overall risk. Even experienced drivers may pose additional risks as they age due to slower reaction times and even decreased mobility getting in and out of the vehicle.
Hiring temporary agricultural workers under the U.S. Department of Labor’s H-2A Temporary Agricultural Employment of Foreign Workers program can also create risk. These workers may have little experience driving on U.S. roads, require extensive training or have a driving history that can’t be checked with their country of origin. But if U.S. workers aren’t available, agricultural businesses that will be hiring H-2A drivers should leverage additional risk management policies and policing to protect the farm operation.
The risk landscape
Working in agriculture is an inherently dangerous job, increasing the risk for workers’ compensation claims. For inexperienced or inattentive drivers, accidents can happen when loading and unloading, particularly when the driver is working solo or if they are unfamiliar with a truck’s setup and operation. With tarp-covered loads, for example, serious injury can result if the tarp rolls back and snaps the driver.
On the commercial auto coverage front, short staffing and lean operating margins put a strain on truck and equipment maintenance. In addition to accidents, an employee’s previous driving violations can increase potential liability. Plus, less-skilled drivers may be unfamiliar with the way liquid and livestock loads shift, altering the truck’s operation, possibly causing an accident.
Risk management for farm drivers
As a first step, agencies and insureds should review up-to-date safety reports for driver applicants as well as current drivers. One resource is the Central Analysis Bureau, which has a proprietary system for rating, tracking and analyzing a motor carrier’s financial and safety strength. Another is the U.S. Department of Transportation’s Federal Motor Carrier Safety Administration’s Safety and Fitness Electronic Records (SAFER) System, which provides safety data and related services to the industry and the public. That way, questionable drivers can be identified before they are hired.
Without this due diligence, an incident could lead to some very heavy jury verdicts. A best practice is to obtain motor vehicle reports on drivers more often than once a year. Carriers can provide frequency guidelines for this.
Next, training is critical. Due to slim operating margins, this frequently happens on the go. When possible, include a more experienced driver on a ride-along for the duration of a pickup or delivery route, so they can share their knowledge in real time along the way.
Technology can keep things safer, too. Relatively inexpensive telematic tracking devices and in-cab cameras can be helpful on two fronts. They can identify drivers with bad habits like hard braking, speeding and distracted driving before an accident occurs. Video can also defend a company from a lawsuit to prove that a driver was not at fault. On the positive side, farm owners can use telematics and videos to reward good drivers to promote safety behind the wheel.
Other safety strategies include the following:
- Have employees sign the fleet safety policy.
- Do pre- and post-trip maintenance checks of brake lines, lights and more.
- Hold monthly safety meetings and invite agents or carriers to help with presentations.
Safety first
Farm and agribusiness owners who take driver risk management seriously will have a better outcome, even in this current hard market. Although the business can’t prevent all accidents, customers who are trying to be proactive — particularly with the guidance of their agent or broker — will reap the benefit. Agents and brokers can help.
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