Preventing Commercial Auto Insurance Claims
How Business Owners Can Mitigate Risks and Prevent Commercial Auto Insurance Claims
The Risks Inherent in Commercial Transportation
Commercial transportation, a sector crucial to the global economy, is fraught with risks. According to data from the U.S. Department of Transportation, the year 2010 a lone witnessed 112,379 non-fatal crashes involving large trucks and an additional 12,763 non-fatal crashes involving buses. The statistics also recorded a concerning number of injuries and incidents involving hazardous materials. How can you do our part in preventing commercial auto insurance claims?
These numbers reflect a broader issue within the transportation industry, one where safety concerns are perennially at the forefront. However, a silver lining appears in the form of declining fatality and injury rates from 2006 to 2010, suggesting improvements in safety measures and perhaps a benefit from reduced road traffic due to economic challenges. Despite these gains, the rate of accidents involving smaller commercial vehicles like light trucks, sedans, and delivery vans continues to climb, underscoring an ongoing need for enhanced safety protocols.
Delving into the Causes of Commercial Vehicle Accidents
Understanding the root causes of accidents is key to preventig the commercial auto insurance claims. The Department of Transportation’s 2007 truck accident causation study provides valuable insights, pinpointing the most common contributors to these mishaps. Notably, brake problems in trucks emerged as a predominant issue, present in 27 percent of truck vs. car collisions. Other significant factors included interruptions in traffic flow, excessive speed relative to conditions, and drivers’ unfamiliarity with the roadways.
The Department of Transportation published a truck accident causation study in 2007. Their findings: The number one factor associated with truck collisions with cars was brake problems. A brake problem on the truck was found to be present in 27 percent of truck vs. car crashes. Only 2 percent of accidents involved brake problems on the car. The overwhelming majority of brake problems in crashes were on the truck. Therefore, it is very important that all trucks follow maintenance schedules to be sure that these types of claims are prevented.
An interruption in traffic flow was the number two factor, involved in 25 percent of truck-on-car crashes. 15 percent of cases involved traveling too fast for conditions, and 19 percent involved unfamiliarity with the roadway.
10 percent of truck operators involved in these accidents reported feeling under work pressure that may have contributed to the accident. Fatigue only accounted for 7 percent of truck drivers in these accidents (but 15 percent of car drivers.)[i]
Truck drivers were far less likely to have been under the influence of illegal drugs (0.4 percent) or alcohol (0.3 percent) than the drivers of cars in these accidents (7 and 9 percent, respectively.) Still .4% is too many, in my opinion.
What Causes these Accidents?
The same study also established the top ten “causative factors” for truck accidents. These are factors that were more than just possible factors associated with the crash. These factors were determined to be critical in the accidents studied.
- Overweight
- Illegal maneuvers
- Inadequate surveillance
- Traveling too fast
- Inattention
- Following too closely
- Misjudging the gap or the other vehicles’ speed
- External distraction
- Brake problems
The author of the study, Ralph Craft, recommended the following actions to prevent commercial auto insurance claims:
- Inspections, compliance reviews and education programs should focus more on thedriver, rather than the vehicle.
- Fleet owners and managers should develop a formal system for rating drivers.
- Focus vehicle inspections on brakes, tires and lights.
These three items were found to be the most critical safety systems on large trucks.
This particular study predated the wide use of sophisticated GPS systems. But unfamiliarity with the roads was determined to be a contributing factor in many truck-on-car accidents. Today’s much-improved GPS systems should, in theory, make it easier on truck drivers. It is, for example, theoretically possible today for drivers to conduct a virtual “rehearsal” of the entire route, using GPS technology and maps and aerial photos easily available on the Web.
Comprehensive Strategies to Prevent Commercial Auto Insurance Claims
Armed with this knowledge, business owners can adopt a multi-faceted approach to reducing the likelihood of accidents:
Ensuring Rigorous Vehicle Maintenance
Regular and thorough maintenance checks are crucial. Key focus areas should include brakes, tires, and lights—components directly linked to accident prevention. Implementing a stringent maintenance schedule can dramatically reduce the risk of mechanical failures that lead to accidents.
Fostering a Culture of Safety Among Drivers
Developing formal systems for rating driver performance and conducting comprehensive training programs are essential. Education on safe driving practices and regular compliance reviews can significantly enhance driver preparedness and responsiveness in various driving conditions.
Leveraging Advanced Technology
Today’s GPS systems and other technological tools offer robust features that can prevent accidents. These systems provide real-time traffic updates, sophisticated route planning, and other logistical support that help drivers navigate safely and efficiently.
Understanding the Legal and Financial Stakes
The consequences of commercial vehicle accidents can be dire, with legal and financial repercussions that can cripple a business. Historical data from legal cases involving commercial transportation accidents show that settlements and awards often reach into the millions. For example, severe injuries and wrongful death claims from accidents have led to substantial settlements, highlighting the critical need for adequate insurance coverage.
Navigating Insurance Needs
Business owners must carefully assess their insurance policies to ensure they have sufficient coverage to handle potential claims. This involves not only reviewing the limits of current liability coverage but also considering umbrella policies that provide additional protection. The goal is to shield the business from devastating financial impacts in the event of a major accident.
Proactive Measures to Help Prevent Commercial Auto Insurance Claims
Business owners can take proactive steps to safeguard their operations from the ramifications of commercial vehicle accidents:
- Risk Assessment: Regularly evaluate the potential risks associated with commercial transportation and update safety protocols accordingly.
- Employee Engagement: Engage with employees about the importance of safety, ensuring that it becomes a core part of the company culture.
- Policy Updates: Continuously update policies and procedures to reflect the latest safety standards and regulatory requirements.
- Incident Reviews: Conduct thorough reviews of any incidents to identify underlying issues and prevent recurrence.
Conclusion
Preventing commercial auto insurance claims goes beyond mere compliance with safety regulations; it involves a holistic approach to risk management, encompassing rigorous maintenance, comprehensive driver training, strategic use of technology, and robust insurance coverage. By implementing these strategies, business owners not only protect their assets but also contribute to the overall safety of the roadways.
Business owners interested in enhancing their safety protocols and insurance solutions can rely on Huff Insurance, a trusted provider dedicated to Protecting Lifestyles™ since 1960. For expert guidance and comprehensive insurance options, contact Huff Insurance at 410-647-1111.