For moving and storage companies, rising auto insurance rates and fewer insurance companies willing to write fleet coverage have made profitability a challenge.
As a result, they are focusing on reducing risks in three key areas– the Safety and Fitness Electronic Records (SAFER) Report, loss frequency and onboarding, and retaining qualified drivers. Consider the following analysis of each issue and best practices you can apply immediately to shrink your fleet risk and liability.
#1 - The SAFER Report. If you’ve got trucks out of service, or a driver was stopped at a way station because their lights or breaks weren’t working or windshield wipers were found bald, your FMCSA Safety and Fitness Electronic Records (SAFER) Report will suffer. Similarly, if the electronic logging device (ELD) is not updated or working properly, the driver doesn’t have their medical card, or if it’s not current, the driver will get a ticket – another factor in the SAFER score.
Because the SAFER Report effectively reveals your fleet’s true risk, it is also the first thing insurers look at when quoting coverage. One thing underwriters have learned is this: if you aren’t maintaining your trucks, you’re likely not maintaining the rest of your business either.
Best Practices. In order to improve your SAFER score, first address the problems uncovered by the score. Then, continue to maintain vehicles across your fleet as best as possible. Get trucks out of service repaired and back on the road. Once vehicles are being maintained, instruct drivers to stop and ask for a courtesy inspection. A good score/ a pass on the courtesy inspection will raise your SAFER score. NOTE: Bring your trucks up to safety standard before asking for a courtesy inspection.
#2 - Loss Frequency and Cause of Loss. The number one loss issue for moving and storage fleet is accidents when driving in reverse. Moving and storage trucks will typically have more than one employee in the truck cab, which makes it easy for one of the employees to direct traffic outside the truck as it reverses, but many teams fall short and reversal accidents remain a major cost for moving/storage businesses. The second most frequent cause of loss is trucks following too closely or driving too fast. A truck with 18K lbs. of goods inside won’t be able to stop fast. In large metropolitan areas, stopping quickly becomes even harder.
Best Practices. The most important thing a moving/storage fleet carrier can do is to review and analyze losses. If driving in a specific area has caused multiple claims, consider discontinuing service to that area. Accidents and insurance losses/claims can also be avoided with appropriate training. This may require re-training managers as well as drivers and seconds-in-command. Consider the entire fleet of moving/storage trucks to determine the best course of action for minimizing loss runs.
#3 - Onboard and Retain Qualified Drivers. Onboarding quality truckers is an issue for every fleet carrier regardless of location or specialty. As moving/storage fleet carriers expand their offerings and grow their businesses, they may find themselves desperate for drivers and consider relaxing their standards. In most cases, though, it’s the new driver who causes the carrier accident and catastrophic claim, not the experienced trucker.
Best Practices. Moving/storage carriers will want to hire new drivers, train them well and retain them. As an industry, it is imperative we make the job more attractive to meet current and future global trucking needs. Some have already done so by offering higher salaries and sign-on bonuses, and even offering drivers the opportunity to return home each night. Several moving/storage businesses have had luck recruiting local firemen who are off a few days a week to take trucking on as a second job. There are some benefits to doing so, including most notably firemen’s knowledge of safe truck driving and handling, and safety during and after a potential accident. New driver training tools, both in recruitment and ongoing life cycle education in a digital environment that attracts quality new drivers will be key to ongoing success.
Contact your HUB Moving/Storage Transportation expert for more information on transferring risk to auto insurance and improving SAFER ratings, reducing loss frequency, driving education by cause of loss and finding and retaining qualified drivers. You can also learn more about HUB’s commercial trucking insurance services here.
