Do you know what your automobile liability carrier requirements are to hire commercial drivers? You should! Part of your driver qualification process should be checking the hiring requirements; you can obtain a copy of your insurance company’s hiring requirements from your insurance agent. So what are some of the requirements? Usually, there is a minimal …
If you are a truck operation and you use owner operators, then yes, you should have bobtail coverage. We have spoken to safety directors, managers, and owners at truck operations and have heard “we don’t need bobtail coverage, because our owner operator drivers are always under dispatch”. While that may be true, there is always a possibility that a driver may not follow the rules.
Safety and compliance programs should contain a driver incentive program. Although companies may have some variation of an incentive program, many are not as effective at improving safety outcomes as they could be. At Transport Safely, we have developed a driver incentive program that is focused on improving CSA SMS BASIC scores and accidents, both core elements that insurance companies monitor to determine if your operation has an effective safety program.
If you are an insurance agent and you try to secure coverage for a transportation company, then you have to provide potential insurance companies proof that your client has some type of safety program. The application process usually has some questions about the type of safety program the company has and who is in charge of the safety program.
One challenge many transportation passenger operations like motor coach companies and bus companies face is that they have to develop a safety and training program based on truck operation safety programs. That just doesn’t work! It’s like placing a square peg into a round hole. For years, I completed audits of passenger operations and witnessed firsthand how they struggled with their safety, training, and compliance programs.
Some transportation companies’ safety and training programs are complicated and difficult to navigate. However, these programs should be straightforward, easy to understand, and documented. Company employees should focus on the areas that their automobile liability insurance company and the Department of Transportation (DOT) regularly focus on – BASIC scores, MCS-150 data, accidents, and safety rating.
So, what exactly is loss control? Simply put, it is the controls you have in place to ensure DOT compliance and safety. Your insurance carrier wants to ensure that the company has sufficient controls in place to limit losses that can affect them paying claims.
One of the costly mistakes a transportation company can make is not updating its Motor Carrier Identification Report (MCS-150 Report). This report must be updated every 24-months; failure to do so can lead to a fine up to $10,000 and your company being shut down by the FMCSA.
I received a telephone call from a motorcoach company today and the owner advised that they had had a multi-bus collision over the weekend. He advised that he had already reported it to his insurance company and his insurance agent. He wanted to know what I would recommend doing after this accident.
The conditions of your automobile liability insurance policy state that you should report all claims in a timely manner. So, what does that mean? Should you report claims when you get all the information? Report them when you feel like it? No, you should report any claim the same day it occurs and no later than 24 hours from the time of the accident. Late reporting of claims is something that your insurance company tracks in their reporting system.