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The Importance of Documenting All Evidence at the Scene of an Accident in the Covid World

August 26, 2020 by Sovereign Risk Solutions ·

If you’re like me, I’m sure you are completely tired of the words “pandemic” and “unprecedented”, and yearn for a return to our normal lives.  Unfortunately, it doesn’t seem that we are destined to return to our old “normal” anytime soon so we must evolve and embrace our new “normal” in many facets of our lives.  Due to COVID’s physical distancing guidelines and social unrest directed at law enforcement, we need to bring everyone up to speed on the importance of documenting all evidence at the scene of an accident.  In normal times, we all relied upon law enforcement to come to the scene of an accident and document the physical aspects of the incident, which generally led to someone being charged for the accident which provided great insight for the claims adjusters to follow in managing the claims and litigation process.  We are now in August 2020, and many Cities, Counties and States are simply not responding to vehicle accidents unless there is resulting Bodily Injury or a vehicle has to be towed.  We recently had a client in Texas whose vehicle was hit by another vehicle but with no Bodily Injury, law enforcement was contacted and they refused to come to the scene.  The client exchanged insurance information at the scene, but did not capture any evidence to help show they were not at fault. Now the other driver that hit him is stating it was not their fault and as a result, their insurance carrier has denied the claim filed by our client.  Clearly this is a terrible situation for our client and we want to try and mitigate it from happening to anyone else.  So, whether law enforcement responds to your incident or not, be proactive in protecting yourself by gathering the following information as quickly as possible:

  • Ensure your own safety
  • Do not admit liability, let the facts prove who was at fault
  • Take pictures and/or video from every angle of the scene
  • Show and comment on the view each driver had prior to impact
  • Take pictures and/or video of the entirety of the vehicle including license plates
  • Take pictures and/or video of any skid marks or debris from the vehicles involved
  • Take pictures and/or video of the environment, commenting on traffic control signals, road width, blind spots, as well as damage to the road or weather conditions that may have contributed to the accident
  • Identify and obtain contact information of witnesses who could corroborate the facts surrounding the accident
  • DO NOT TAKE PICTURES OR VIDEO OF INJURED PERSONS

We hope you are not involved in any accidents, but if you are, please take charge of your defense by quickly documenting the above while waiting to learn if law enforcement is going to respond or not.  Even if law enforcement responds, your ability to recite and provide the above information will go a long way towards their analysis of the incident, as well as help your claims adjuster protect your interest to the fullest extent possible.

Filed Under: News ·

Cleaning and Disinfection for Non-Emergency Transport Vehicles

May 12, 2020 by Sovereign Risk Solutions · Leave a Comment

Interim Recommendations for U.S. Non-emergency Transport Vehicles that May Have Transported Passengers with Suspected/Confirmed Coronavirus Disease 2019 (COVID-19)

People who are known or suspected to have COVID-19 may use non-emergency vehicle services, such as passenger vans, accessible vans, and cars, for transportation to receive essential medical care. When transporting a known confirmed positive passenger, it is recommended that drivers wear an N95 respirator or facemask (if a respirator is not available) and eye protection such as a face shield or goggles (as long as they do not create a driving hazard), and the passenger should wear a facemask or cloth face covering. Occupants of these vehicles should avoid or limit close contact (within 6 feet) with others. The use of larger vehicles such as vans is recommended when feasible to allow greater social (physical) distance between vehicle occupants. Additionally, drivers should practice regular hand hygiene, avoid touching their nose, mouth, or eyes, and avoid picking up multiple passengers who would not otherwise be riding together on the same route.

CDC recommends that individuals wear cloth face coverings in settings where other social distancing measures are difficult to maintain, especially in areas with significant community transmission. Cloth face coverings may prevent people who don’t know they have the virus from transmitting it to others; these face coverings are not surgical masks, respirators, or personal protective equipment (PPE). Cloth face coverings should not be placed on anyone who has trouble breathing, or is unconscious, incapacitated or otherwise unable to remove the mask without assistance.

 

The following are general guidelines for cleaning and disinfecting these vehicles. Similar guidance can be found for cleaning and disinfecting EMS vehicles used to transport persons with suspected or confirmed COVID-19.

At a minimum, clean and disinfect commonly touched surfaces in the vehicle at the beginning and end of each shift and between transporting passengers who are visibly sick. Ensure that cleaning and disinfection procedures are followed consistently and correctly, including the provision of adequate ventilation when chemicals are in use. Doors and windows should remain open when cleaning the vehicle. When cleaning and disinfecting, individuals should wear disposable gloves compatible with the products being used as well as any other PPE required according to the product manufacturer’s instructions. Use of a disposable gown is also recommended, if available.

  • For hard non-porous surfaces within the interior of the vehicle such as hard seats, arm rests, door handles, seat belt buckles, light and air controls, doors and windows, and grab handles, clean with detergent or soap and water if the surfaces are visibly dirty, prior to disinfectant application. For disinfection of hard, non-porous surfaces, appropriate disinfectants include:
    • EPA’s Registered Antimicrobial Products for Use Against Novel Coronavirus SARS-CoV-2external icon, the virus that causes COVID-19. Follow the manufacturer’s instructions for concentration, application method, and contact time for all cleaning and disinfection products.
    • Diluted household bleach solutions prepared according to the manufacturer’s label for disinfection, if appropriate for the surface. Follow manufacturer’s instructions for application and proper ventilation. Check to ensure the product is not past its expiration date. Never mix household bleach with ammonia or any other cleanser.
    • Alcohol solutions with at least 70% alcohol.
  • For soft or porous surfaces such as fabric seats, remove any visible contamination, if present, and clean with appropriate cleaners indicated for use on these surfaces. After cleaning, use products that are EPA-approved for use against the virus that causes COVID-19external icon and that are suitable for porous surfaces.
  • For frequently touched electronic surfaces, such as tablets or touch screens used in the vehicle, remove visible dirt, then disinfect following the manufacturer’s instructions for all cleaning and disinfection products. If no manufacturer guidance is available, consider the use of alcohol-based wipes or sprays containing at least 70% alcohol to disinfect.

Gloves and any other disposable PPE used for cleaning and disinfecting the vehicle should be removed and disposed of after cleaning; wash hands immediately after removal of gloves and PPE with soap and water for at least 20 seconds, or use an alcohol-based hand sanitizer with at least 60% alcohol if soap and water are not available. If a disposable gown was not worn, work uniforms/clothes worn during cleaning and disinfecting should be laundered afterwards using the warmest appropriate water setting and dry items completely. Wash hands after handling laundry.

Content source: National Center for Immunization and Respiratory Diseases (NCIRD), Division of Viral Diseases, CDC Coronavirus Disease 2019 (COVID-19)

Filed Under: News ·

Navigating the COVID-19 Waters

April 6, 2020 by Sovereign Risk Solutions · Leave a Comment

We can all agree the COVID-19 virus has flipped our nation on its side. Some industries seem to be thriving while others are floundering. Grocery stores are empty, children are finishing out their school year online, people are having to cancel vacations, and all non-essential medical appointments are postponed until further notice. In the meantime, bills are still due. Now the question becomes, what can be done to help navigate these unfamiliar waters? While we cannot speak to what banks, credit card companies, utility providers, etc. are and/or will be doing to help their customers, we can offer insight as to what actions some insurance carriers within the NEMT arena are taking during this pandemic.

Unfortunately, each insurance carrier is different and there isn’t one set action or accommodation to cover the NEMT industry as a whole. Over the past two  weeks we’ve seen some carriers allow their insureds to complete a “Temporary Out of Service” form that essentially allows their insureds to list vehicles currently not running trips, and provides a premium reduction on said vehicles for the next 45 days. Other companies are relaxing their normally stringent requirements, allowing more flexibility for insureds to temporarily remove unused vehicles from their policy.

While the options mentioned above might seem to offer immediate relief, it may take longer than expected, and there are two primary reasons for this: First, normal turnaround time to process an endorsement (change to policy) can range anywhere from two weeks to 45 days (pending workflow of the insurance company). Second, the majority of insurance premiums in the NEMT industry are financed via a Premium Finance Company (lending companies for insurance premiums). It is very important to understand that premium finance companies are NOT insurance companies. If your insurance policy is financed through a premium finance company, credits for changes made to your policy have to be sent from the insurance company to the finance company and applied to your loan. Unfortunately, this process adds additional time to the “relief” company owners are looking for.

So, what do you need to do? The most important thing to do is be proactive. If you are in a position where you need assistance, don’t expect companies to reach out to you first. While everyone is doing their best during this time, the truth is, this pandemic is uncharted territory for all of us. Many companies that are able to remain in operation are doing so remotely, which again, is a new process for many people. Be proactive, take the first step. There are people ready and willing to assist you with whatever your specific situation may be.

We will make it through this pandemic. Our Country and our people are stronger than this virus. There are sure to be tough times in the upcoming weeks, but together we will successfully Navigate the COVID-19 Waters.

Your Sovereign Risk Team

Filed Under: News ·

Automobile Physical Damage Coverage – “Stated Value” vs. “Actual Cash Value”

August 6, 2019 by Sovereign Risk Solutions · Leave a Comment

You may have asked yourself “what do I get paid for my vehicle in the event of a total loss?”.  The answer depends on the coverage you selected when originally securing coverage.  The two most common types of automobile valuations are Stated Value and Actual Cash Value.

Stated Value is the value you as the insured are “stating” the vehicle to be worth. However, this does not necessarily mean you will be paid the full stated amount should you suffer a total loss.  Insurance companies design the coverage to allow for the ability to pay out the stated value or the actual cash value, whichever is lower. Often insureds will use the Stated Amount approach in an effort to save money on their premium. However, this plan can adversely affect the insured in the event of a total loss if the stated value was underestimated at policy inception. For example, when first insuring the vehicle, the insured provides a stated value of $15,000 knowing that the vehicle is actually worth $25,000. Should a total loss occur shortly after policy inception, the insurance carrier pays out the lesser of Stated Value and Actual Cash Value, resulting in a payout of $15,000 (minus any deductible) vs. what could have been closer to $25,000 (minus any deductible).

Actual Cash Value (ACV) is a valuation process used by insurance carriers to determine how much will be paid to an insured when a total loss occurs. Regardless of what value an insured might list for their vehicle(s) at policy inception, the claim payout is based on the vehicle’s market/book value at the time of loss, less any deductible that might apply. For example, you were just involved in an accident that resulted in the total loss of a vehicle you purchased brand new three years ago for $25,000.  The insurance carrier is going to evaluate many aspects of your vehicle such as year, make, model, mileage, etc. and will determine what they believe the Actual Cash Value of the vehicle to be.  Once the insurance company determines the ACV, they will subtract any deductible you might have, and provide you with the remaining payment (ACV of $15,000 – $1,000 Deductible = $14,000 payout).

Please note, whether you have Stated Value or Actual Cash Value, the insurance carrier will pay any monies due to a lien holder on the vehicle in an effort to satisfy the loan, before any funds can be provided to you as the insured.

Filed Under: News ·

Selecting an Insurance Agent

May 30, 2019 by Sovereign Risk Solutions · 1 Comment

Insurance. There’s probably not a more disliked or misunderstood word for paratransit transportation companies. It’s very expensive and probably seems illogical that it cost so much. The first step in controlling your insurance financial destiny is to truly understand as much as possible about the entire insurance distribution process. Unlike low hazard industries, the big direct writing insurance companies (i.e. – Allstate, Progressive, State Farm, etc.) will not write paratransit as a class of business, which requires you to work with an independent agent. Selecting your independent agent is one of the most important decisions you will make in controlling your insurance cost and securely positioning your company for financial success.

We believe the following key characteristics need to be fully explored to ensure you are getting the best overall representation and return for your money:

1. Industry Experience. Non-emergency medical transportation is unlike any other form of passenger transportation as respects standards of care, levels of service, payment sources, contractual obligations, vehicle and driver requirements, and more. Your agent needs to be widely versed in all aspects of the industry in order to help mentor your company operationally which is a key component to insurance companies underwriting evaluations, where coverage terms and pricing are determined.

2. Carrier Representation. Independent agencies must “contract to represent” an insurance company, whereby there’s a formal contractual relationship between the agency and the insurance carrier that specifies all aspects of the business relationship. Very few insurance companies are currently writing paratransit operators at this time so it’s critical that your agent be contracted with as many insurance carriers writing in this industry as possible so that your options are maximized.

3. Agency Infrastructure and Commitment. Agencies are typically small companies themselves, working to balance profitability and performance. There are system tools that agencies can purchase that enhance the agency’s operational efficiencies while simultaneously enhancing client engagement, simplify communications, include better payment options, source lower cost driver screenings, and more. Is your representing agency investing in their people and systems to ensure you, the paying client, have the best communications and lowest operational costs?

4. Personal Relationship. All business engagements have some form of relationship, but has it evolved to the personal level? At the personal level both parties are able to “open up” and be completely blunt and honest with each other, allowing a level of mutual communication that cannot be held otherwise. During that process both parties can learn and grow from each other, creating mutual respect and in some cases lifelong friendships.

Independent agents are generally hardworking people who are trying to make a living, just like you. They have many of the same challenges that you do from recruiting, training and mentoring employees as well as managing their cash flow and payment of bills. When you have an agency relationship that meets the four characteristics above you have reached the pinnacle, and should be thrilled in your investment of time to find and build that relationship. If you don’t have these components in your agency relationship, we encourage you to keep looking because it can and will make a difference to the success of your company in many ways beyond just the procurement of insurance.

Filed Under: News ·

Protect Yourself Against Cyber Threats

January 23, 2019 by Sovereign Risk Solutions · Leave a Comment

Technology is an invaluable asset to every organization, no matter how big or small, and the speed in which technology continues to advance is both amazing and alarming. While technology provides countless benefits to business of all shapes and sizes, it also brings along it’s fair share of problems. The truth of the matter is, that if your company has devices that are connected to the internet, it is only a matter of time before a cyber security incident occurs; regardless of risk controls your organization may have in place.

As of 2018, more than 7 out of 10 of all U.S. based organizations were affected by a data breach in some way or the other. 46% of U.S. based organizations experienced a breach incident in the past year. According to Symantec, the average cost of a cyberattack, for a small to medium sized business, is $188,242. To make matters worse, 60% of all small to midsized businesses that are compromised go out of business six months after. While these numbers are staggering, what is more staggering is that 62% of organizations surveyed by the National Center for the Middle Market and Cisco confirmed that they do not have an up-to-date or active cybersecurity strategy – if they have one at all.

The unfortunate truth is that, no matter how diligent you or your employees are, it is only a matter of time before your organization will experience a breach. Here at Sovereign Risk Solutions we work with insurance companies who are not only experts in the Cyber Insurance industry, but are forerunners within it. Our agents will assist you with designing the perfect Cyber coverage for your organization, and are ready and willing to help you with every step of the insurance process. Give us a call today to set up a Cyber Insurance consultation!

Filed Under: News ·

Repost: The 21st Century Flood Reform Act: What’s in it?

December 1, 2017 by PropertyCasualty360.com · Leave a Comment

This article was originally published on PropertyCasualty360.com.

On Nov. 14, the U.S House of Representatives passed the 21st Century Flood Reform Act (H.R. 2874) to address the issue of the cost of repeatedly flooded properties draining the National Flood Insurance Program (NFIP), which is already in significant debt.

There are five sections to the bill: policyholder protection and information, increasing consumer choice through private market development, mapping fairness, protecting consumers and individuals through improved mitigation, and program integrity. Here are the highlights of each section:

Image of Flood Insurance Policy

Policyholder protections and information

This section limits annual premium increases to 15% and annual increases will be no less than 5%. Much of the NFIP’s financial issues arise from inadequate premiums. The bill authorizes an affordability program to provide financial assistance to those with incomes below 150% of the poverty level for the state through a state program.

The state will verify income, rate increases will be limited on eligible households, and a surcharge will be applied to each flood policy to help pay for this assistance to eligible households. Monthly installment payments will now be acceptable, and policyholders will be advised of their full flood risk determinations and the actuarial soundness of their premiums.

Upon transfer of property, the flood risk information for the property must be disclosed to the purchaser after Sept. 30, 2022. Otherwise, no new flood coverage may be provided.

Increasing consumer choice through private market development

The Write Your Own Program will no longer contain a non-compete clause, thus allowing insurers, agents, brokers and others to offer and sell private flood insurance. ISO has already developed commercial and personal flood programs that are currently being filed with the states.

Information accumulated by the NFIP related to risks of flooding on individual properties, loss ratios, current and historical claims information, identification of mitigation efforts or lack thereof will be made public through an open-source data system. A publically searchable database of community information will be established no later than 12 months after the enactment of this section.

Cancellation of a policy due to replacement with another flood policy will generate a refund of unearned premium. The cancellation will be effective the date the new policy is effective. Definitions of the terms federal flood insurance, flood insurance, mutual aid society, private flood insurance and state are provided in the bill.

The establishment of flood damage savings accounts will be allowed once reviewed and determined to be feasible. A flood damage savings account is an account established by the owner of a property and the proceeds are available only to cover losses from flooding.

Mapping fairness

Risk assessment data and tools to identify flood areas will be identified and used. The state, local government or owners of property may appeal a denial of a request to update a flood map. The appeal must be based on knowledge that the map is scientifically or technically inaccurate or that factors exist that mitigate the risk of flooding.

Protecting consumers and individuals through improved mitigation

This section amends the provision of community rating system premium credits to the maximum number of communities practicable.

Program integrity

This amends the act to review and eliminate nonessential costs within the program and to have an independent actuarial review of the program to be conducted annually. Provision is made for a nonrefundable annual surcharge to be applied to all policies newly issued or renewed after the date of this section.
The surcharge is $40 except for residences that are not the primary residence of an individual and eligible for preferred risk rate method premiums; the surcharge for these properties is $125. Nonresidential properties and properties that are not primary residences and are not eligible for preferred risk rate method premiums will be surcharged $275.

Multiple-loss, repetitive-loss, severe repetitive-loss properties and extreme repetitive-loss properties are all defined in the bill. Premiums for such policies will be adjusted by no less than 15% annually until such rates reflect the current risk of flood.

If the owner of an extreme repetitive-loss property receives claim payment under this title and refuses an offer of mitigation for the property, flood insurance will not be made available to that owner through the flood program. Grants will be made to property owners in coordination with the state and community in order to carry out mitigation activities to reduce flood damage to extreme repetitive-loss properties.

The bill now must go to the Senate for approval. The hurricanes of 2017 strongly showed how desperately flood reform is needed, not only in policy availability but also in mitigation efforts.

Christine G. Barlow, CPCU, (cbarlow@alm.com) is managing editor with FC&S, the premier resource for insurance coverage analysis. She has an extensive background in insurance underwriting. For additional information on FC&S Online, visit www.NationalUnderwriter.com

This article was originally published on PropertyCasualty360.com.

Filed Under: News ·

Agent of Record Letters

September 22, 2017 by Sovereign Risk Solutions · Leave a Comment

What is an Agent of Record Letter or AOR?  An AOR is a written declaration by an insured designating which insurance agency they want representing them in the insurance marketplace, or to a specific insurance company within the marketplace.  

In the Property and Casualty marketplace, most insurance carriers will only work with a single agency at a time on a specific client.  This is completely different than the health insurance marketplace, where most insurance companies will quote for multiple agencies simultaneously on the same client. 

Confusing?  Yes, even to many persons who work in the insurance industry!  

insurance paperwork signature

So, what’s the big deal about AORs?  Simply put, they are important instruments that are frequently misunderstood and misused, resulting in harm to both client and agent.  There are certainly times when an AOR should be used and when they should not.  Let’s explore both scenarios. 

An AOR should be used when a client is dissatisfied with the service of their agent or agency, there’s a communication disconnect, or they simply don’t feel like they’re being treated as a valued client.  In these cases, the client relationship has simply become stale. Perhaps the salesperson who wrote the business may have moved on to another agency or line of work leaving the client relegated to being the “glorified house account” receiving limited attention and service. Unfortunately, it happens in practically every agency in the country, and on every size of client.

Another situation an AOR should be executed to move the business from one agency to another is when the client perceives there’s a significant expertise gap between the agencies value propositions or expertise.  For example, let’s say the GENERAL INSURANCE AGENCY has a single milk delivery client and only provides basic insurance intermediary services.  The milk delivery company later becomes aware of MILK INSURANCE AGENCY. They have developed a specialized and tailored placement and service process specifically designed for milk delivery companies that includes safety management, dedicated claims and litigation management, and an excellent reputation affirmed by their extensive milk delivery clientele.  In this case, the milk delivery company believes its business will be better protected, serviced and monitored by the MILK INSURANCE AGENCY, and they execute an AOR that terminates the representation from GENERAL INSURANCE AGENCY. 

Unfortunately, many times clients are misled into signing an AOR by a competing agency by simply telling the client “sign this paper so I can get you a quote from XYZ Insurance Company.”  What they fail to disclose to the client is that by executing the AOR they are in fact terminating or blocking the incumbent agent and agency.  Again, there are reasons agencies should lose their business as noted above, but not from a competing agent being less than fully transparent and honest with them.  If you are asked to sign an AOR so the agent can “get a quote” hopefully you’ll recognize the game being played and will not fall prey.  

Another all-time AOR ploy by some less scrupulous agencies is telling a client “We are the biggest agent for ACME Insurance Company and therefore we’ll get you a better deal,” or “We have a special relationship.”  Don’t fall prey to these underhanded and deceptive attempts to literally steal your business from your incumbent agent/agency who worked hard to gain your business in the first place.  Ask for specific examples of how and why their agency is better prepared to represent your company and steward your insurance programs.    

There are legitimate times and reasons to execute an AOR.  We urge you to understand that by signing the document you are hiring AND firing the respective agents and agencies and to use informed discernment in making the decision.  As always, we are available to discuss the circumstances in your specific decision-making process as respects all aspects of your risk management and insurance programs. 

Filed Under: News · Tagged: agency, Agent of Record Letter, AOR, insurance

Repost: Child Passenger Safety Week: Here’s What You Need to Know

September 18, 2017 by PropertyCasualty360.com · Leave a Comment

This article was originally published on PropertyCasualty360.com.

There are distractions inside the car, aggressive drivers on the road with you and weather conditions are just some factors to consider every time you step into your car. That’s why practicing safe driving is a must at all times. Not only are you protecting yourself, but also everyone else who is on the road.

pregnant woman selecting safe car seatEveryone who’s on the road isn’t always just the driver, however. More often than not, a vehicle is filled with a family headed to their desired destination. Spouses and children are inherently at risk, as well. With this in mind, there are tips you can take whether you drive by yourself or with your family to keep yourself and those around you safe.

 

Child Passenger Safety Week, which falls on September 17-23, 2017, is here and the National Highway Traffic Safety Administration has teamed up with the Ad Council to provide some evergreen driving tips. Here’s what you need to know:

Which car seat should you use?

Parents know that a standard seat belt is not suitable for an infant or toddler. As they grow, how they sit in your car will change. But until they’re ready, they should be in the car seat that’s right for them. But which is the right one?

There are four car seat types, and the ages they are often used from depending on the child’s size:

  • The rear-facing car seat (birth to year 3) is the best seat for your young child to use. It has a harness and, in a crash, cradles and moves with your child to reduce the stress to the child’s fragile neck and spinal cord. There are three types of the rear-facing car seat: an infant car seat (rear-facing only), a convertible seat, and an all-in-one seat.
  • The forward-facing car seat (year 1 to year 7) has a harness and tether that limits your child’s forward movement during a crash. There are three types of the forward-facing car seat: a convertible seat, a combination seat, and an all-in-one seat.
  • The booster seat (year 4 to year 12) positions the seat belt so that it fits properly over the stronger parts of your child’s body. There are four types of booster seats: booster seat with high back, backless booster seat, combination seat, and an all-in-one seat.
  • The seat belt (year 8 to year 13 and beyond) should lie across the upper thighs and be snug across the shoulder and chest to restrain your child safely in a crash. It should not rest on the stomach area or across the neck or face.

With so many options, knowing how to install a car seat properly is just as important. Information on installation can be found here.

Buckling up: A guide for pregnant women

Naturally, everyone in the car should buckle up and use their seat belt. But for pregnant women, under different circumstances, what should they do?

The answer is to always buckle up. Never drive or ride in a car without buckling up. Doctors advise that buckling up through all stages of a pregnancy is the single most effective action a woman can take to protect themselves and their unborn child in a crash. 

Pregnant woman NHTSA

(Infographic: Trafficsafetymarketing.gov) 

This article was originally published on PropertyCasualty360.com. For another article on Child Passenger Safety, please click HERE.

Filed Under: News ·

Why MVRs and Drivers’ Behavior are Vitally Important to Your Success

September 11, 2017 by Taylor Westbrook · Leave a Comment

While it’s not always easy to find qualified and tenured drivers, it is very important to make sure you are hiring drivers that have proven themselves to be responsible and safe.  As you know, each driver has a Motor Vehicle Record (MVR) which acts as a “report card” for an individual’s driving history. Although MVRs are individual to each driver, they also act as a reflection for or against you as a business owner, and your company’s operational standards.  Exhibiting a low standard in hiring drivers raises a red flag with the insurance carrier on just how serious you are about safety, and ultimately can result in higher premiums due to elevated accident frequency and large losses.

Low expectations of your drivers is not the message you want to broadcast. MVRs are not only reviewed by transportation brokers you may be contracted with, but by your insurance carrier and plaintiff attorneys as well.  Whether you’re a new or veteran business, your driver criteria sets the bar.  Take for example your insurance premiums.  If you are new to the industry, you want to be able to show the insurance carriers that you are looking to hire only the best in class drivers. This will help prove to the underwriters that you are serious about your company’s operations, as well as the safety of your passengers. Providing clean and clear MVRs will give your insurance agent the ability to build the strongest presentation possible in order to provide you with competitive and affordable insurance premiums.  You should also be aware, that while presenting an insurance underwriter with MVRs evidencing dangerous and careless driving isn’t in your best interests, it can be equally as damaging to present them with MVRs that show a prior suspension, past due child support, seat belt violations, etc.  Infractions such those work against the driver as they evidence a lack of responsibility in the eyes of the underwriters.  Not only could the carrier charge a higher premium, they could also chose to exclude those drivers labeled as “hazardous” from your policy, or the underwriter could decide to decline to provide your company with a quote all together.  Below is a real life example of an incident that occurred due to unnecessary aggressive driving.

At approximately 7:00AM our insured driver was traveling east bound on a rural two lane highway, carrying a single 50 year old female passenger.  According to the incident report, the insured driver maneuvered to pass a semi-truck, and while attempting, was forced to quickly change lanes due to oncoming traffic. As a result the vehicle clipped the left rear-end of the semi sending the insured’s vehicle into a spin and off the road. This driver, a 67 year old male, was cited for an “unsafe passing maneuver”.  While there was minimal damage to the semi-truck, the insured’s van was a total loss, and the female passenger reported complaints of soft-tissue damage.

When reading the brief claim report above, you might think to yourself, “this isn’t too tragic of an incident”, however, after some time had passed, the insured’s passenger reported complaints and filed a claim for bulging discs, which eventually resulted in attorney representation, and ended in a bodily injury settlement at mediation for a sum of $230,000.  This claim is a perfect example of why it so important to thoroughly review your drivers’ MVRs, monitor you drivers’ behavior, and most importantly, always stress that safety is your number one priority.  The driver’s impatient attitude, not only cost the insurance carrier $230,000 in claim payments, and will without a doubt help to raise the insured’s future premiums on a go forward basis, but they almost killed someone.  If the drivers MVR had any reported instance of aggressive driving, the plaintiff attorney could have attempted to file for punitive damages against the insured, a coverage which is excluded from just about all commercial auto policies.

In summary, your drivers are a direct representation of your company, not only from a physical and visual point of view, but from an accident and loss history perspective as well.  Empower your drivers, let them know that they are not only the face of the company, they are also the largest contributing factor to the company’s continued success.  Driver actions both good and bad, are significant factors in determining your insurance premiums.  The lower you insurance costs, the more profitable your company, and vice versa.  Inform your drivers that their performance as a collective group determines their earnings, and keeping premiums down allows for bonuses and/or raises.

Filed Under: News ·

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READ OUR BLOG

  • The Importance of Documenting All Evidence at the Scene of an Accident in the Covid World
  • Cleaning and Disinfection for Non-Emergency Transport Vehicles
  • Social Media and Your Commercial Insurance
  • Navigating the COVID-19 Waters
  • Automobile Physical Damage Coverage – “Stated Value” vs. “Actual Cash Value”

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