Focus on Company Snapshot

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.

What many companies don’t realize is that their insurance carriers look at their company information on a regular basis, in some cases every 30 days. This is especially true for companies they insure that have BASIC scores above the intervention threshold, high accident frequency rates, and/or a poor safety rating.

Behavior Analysis & Safety Improvement Categories (BASIC)

These are the core matrices that your insurance company and the DOT watch to determine the safety of a transportation company. These scores are updated every 30 days in the Compliance Safety Accountability (CSA) system. If any of your company’s scores are above the intervention threshold, meaning a poor score, it can trigger a loss control review, and in some cases, an outright cancellation of the company’s insurance policy. Insurance companies do not mess around with poor BASIC scores; if they think your company is a bad risk, they will cancel your insurance policy.

Therefore, keep your company’s MCS-150 report up-to-date. Regulations require it to be updated every 24-months. Correct information will ensure your data in the company’s BASIC scores are correct. Review your company’s scores every 30 days and be sure to DataQ any challenges as soon as possible. Remember, this is your company’s safety report card.

Accidents

The other area your insurance company monitors closely is accidents. If your company has had an accident, it is important that you speak with your insurance agent to let him/her know what happened in the accident, what the company is doing to reduce the frequency of accidents in the future, and what information the insurance company needs in order to handle the claim. Always report any accident to your insurance company within 24-hours. Failure to report claims/accidents to insurance companies within 24-hours can result in cancellation of the company’s insurance policy.

Safety Rating

If your company has any rating with the Federal Motor Carrier Safety Administration (FMCSA) other than “No Rating” or “Satisfactory,” you need to provide a detailed explanation to your insurance agent about why the company received the rating. Insurance companies are cancelling insurance policies for “Conditional” and “Unsatisfactory” safety ratings. It is important to maintain a “Satisfactory” rating and not let your insurance company have a reason to cancel your policy.

Focus

Poor BASIC scores, incorrect MCS-150 data, high accident frequency rates, and poor safety ratings can lead to higher insurance premiums or cancellation of your company’s insurance policy. When you are designing the company’s safety and training programs, keep them simple, documented, and focus on the areas mentioned in this article.

Filed under: Insurance, Operations