Mitigating Risks in Commercial Fleets: Insights From a Claims Perspective, Part I

Many safety experts have been known to say “you hire your accidents,” which means that driver hiring, specifically in the commercial auto industry, is likely the most essential component of maintaining a strong safety culture and keeping accidents to a minimum.

Data from a recent driver behavior survey conducted by Nationwide shows that one third (34%) of commercial drivers polled admitted to feeling distracted while on the road. Their fellow drivers have also noticed: 6 out of 10 commercial drivers said they see colleagues looking at their phones while driving and driving faster than they were compared to last year.

Among the many steps and requirements for hiring top driver talent are thorough background checks, not just criminal or for substance use, but specifically drivers’ Motor Vehicle Records (MVR). A commercial auto company’s safety department should be looking to spot any red flags when screening new drivers by maintaining effective communication with insurance professionals, such as claims handlers, adjusters, managers, and underwriters. This collaboration helps manage risks, optimize insurance premiums, and enhance overall fleet safety.

Through the proactive sharing of data, like incidents and claims, telematics and safety reports, driver hiring managers should be getting enough information related to driver conduct on losses. Not only on claims where the driver was cited, fell asleep, or committed another high risk infraction, but also on virtually any claim, including striking unoccupied/parked cars. Why is this important? Even in a low exposure loss such as striking a parked car, something caused the driver to commit the error, and similar conduct in the future might just produce a catastrophe the next time around.

Claims people are not trained safety experts, but part of their expertise is in spotting patterns. Their experience, instincts, and knowledge of historical claims can help point to adverse patterns in driver safety, ultimately helping commercial auto companies hire the safest drivers. Once again, it is important to keep an open line of communication between safety departments and insurance claims managers and underwriters to regularly review safety protocols, recent incidents, and driver performance metrics.

Some best practices to consider when trying to mitigate driver risks in commercial fleets:

• Encourage open and real-time communication between fleet safety and insurance claims departments

• Provide regular feedback to claims handlers to ensure healthy future collaboration

• Regular safety meetings and trainings

• Strategic use of technology such as integrated data platforms and predictive analytics:

• Shared dashboard of safety scores, incident reports, claims history

• Tools that analyze historical claims and driver behavior data to help prevent incidents before they occur

• Alignment on hiring standards

• Ensure that the safety department’s hiring criteria for drivers align with the underwriting guidelines set by insurers.

• Involve insurance underwriters in the development of pre-hire assessments and background checks. By aligning these assessments with the underwriter’s risk models, the company can ensure that only drivers who meet stringent safety standards are hired, which can positively influence insurance costs and claims frequency.

• Documentation and compliance

• The safety department should maintain thorough documentation of all safety protocols, driver training records, and incident reports. This documentation should be readily accessible to claims handlers and underwriters as part of the company’s compliance and risk management practices. Proper documentation helps in defending claims and can support favorable underwriting terms.

• Regular updates on compliance with industry regulations should be shared with insurance professionals to ensure that the company remains in good standing with legal requirements, which is crucial for both risk management and insurance coverage.

Building and sustaining a strong safety culture in the commercial auto industry starts with the hiring process. The idea that "you hire your accidents" reflects the reality that the quality of drivers a company employs directly impacts its safety outcomes and financial health. When safety departments and insurance professionals collaborate closely to evaluate every aspect of a driver's history, behavior, and performance, they play an important role in preventing accidents.

This partnership, where safety teams, claims handlers, and underwriters continuously share data and insights, not only enhances hiring practices but also creates an environment where risks are detected early, and proactive measures are taken. Such collaboration goes beyond minimizing accidents; it strengthens the entire operation, ensuring that every driver on the road contributes to a safer, more reliable fleet. Ultimately, making safety a collective responsibility turns the hiring process into the cornerstone of a culture where safe driving is the norm, not the exception.