Insurance Agents,Helping Improve Fleet Safety

Presenter: Chris Vernon

Topics• Why Safety Is In A Fleet’s Best Interest

• DOT Compliance– CSA (Compliance, Safety, Accountability)

• SMS (Safety Measurement System)

• Data Q

– DOT Audits/Compliance Reviews

• IFTA/Fuel Tax Reporting & Registration

• How does this knowledge help you

Why Such A Push For Safety

• Commercial Vehicle Statistics for 2011:

– 4,000 fatalities nationwide

– 400,000 injuries nationwide

– 22 fatalities in Utah

Why Insurance Agents Get Involved

• Improved Public Safety

• Reduced Risk For Insurance Carrier

• Develops Loyalty Toward the Agency

• Higher Profit For Everyone

How Insurance Agents Get Involved

• Be A Safety Consultant

– DOT Compliance

– CSA Score Management

– DOT Audits

1. CSA (Compliance, Safety, Accountability)ATRI (American Transportation Research Institute) survey ranked CSA as the #1 concern for trucking companies in 2012.

2. DOT Audits

They are relatively simple if you are prepared, but are a nightmare if you aren’t. An audit that turns our poorly will cause you long term problems that can last for years. New companies that have problems with their new entrant audit are significantly more likely to go out of business.

DOT Compliance

CSA What Is It-Compliance, Safety, Accountability (CSA) is a Federal Motor Carrier Safety Administration (FMCSA) initiative to improve large truck and bus safety and ultimately reduce crashes, injuries, and fatalities that are related to commercial motor vehicles. It’s primarily focused on helping FMCSA improve its enforcement operations.

“Motor carriers are paying more attention than ever to their safety performance.”–FMCSA Administrator, Anne Ferro

How Does CSA Improve Safety

• Identifies motor carriers with poor safety practices

• Pressures such carriers to improve practices

• Escalates intervention if saftey practices do not improve sufficiently

• Can result in motor carrier being placed out of service

How Does CSA Work

• Measurement (Via SMS-Safety Measurement System)

– Roadside Inspections, Traffic Violations, Crashes

• Evaluation

– Which carriers need what type of intervention

• Intervention

– How the FMCSA or State Partners will get involved

SMS (Safety Measurement System)http://ai.fmcsa.dot.gov/sms/

Overview

Basic Scores

Consequences Of Bad BASIC Scores

• Early Contact– Warning Letter– Extra Roadside Inspections

• Investigation – Offsite Investigation– Onsite Focused– Onsite Comprehensive

• Follow-On– Cooperative Safety Plan– Notice of Violation, requires a Corrective Action Plan– Notice of Claim, Involves Civil Penalties– Operations Out-of-Service Order

Evaluation

• The system identifies which carriers require what type of intervention, using a policy-driven process called intervention selection

• It then determines which carriers should be deemed "Unfit" to operate, using a regulatory process called Safety Fitness Determination (SFD)

Evaluation & Thresholds

BASIC General HM PassengerUnsafe Driving, HOS Compliance,Crash Indicator

65% 60% 50%

Driver Fitness, Controlled Substances/Alcohol, Vehicle Maintenance

80% 75% 65%

HM Compliance80% 80% 80%

Intervention

• Early Contact– Warning Letter

– Targeted Inspections

• Investigation– Offsite

– Onsite Focused or Comprehensive

• Follow-on– Notice of Violation, requires a Corrective Action Plan

– Notice of Claim, involves civil penalties

– Out of Service Order

Benefits of Good Basic Scores

• Better insurance rates

• Less likely to be inspected at a port

• Less likely to be audited

• Less likely to be placed Out-of-Service

Whose Actions Affect Each Category?

Driver

• Unsafe Driving

• HOS Compliance

• Driver Fitness

• Don’t do Drugs

Company

• Drug and Alcohol

• Hazardous Material

Both

• Vehicle Maint

• Crash Indicator

How Do Carriers Manage CSA

• HIRE GOOD DRIVERS (Use the FMCSA Pre-Employment Screening Program)

• Put good policies and procedures in place that encourage safe driving

• Regularly monitor SMS – Hold drivers accountable when they have a

violation and have not followed policies

– Correct errors through the Data Q system

Drivers

• The FMCSA uses SMS to hold motor carriers responsible for the job performance of those who work for them

• Therefore, the FMCSA holds motor carriers accountable for their drivers’ errors, such as speeding

• Carriers have tools like FMCSA’s Pre-Employment Screening Program (PSP) to help them evaluate potential new hires.

Data Q

DOT Audits/Compliance ReviewsA Simple Folder System

1. Company Info, Driver List, Equipment List

2. Insurance Documentation

3. Accident Report

4. Driver Qualification Files

5. Drug and Alcohol

6. Logbooks/Timesheets

7. Truck Documents and Maintenance i.e. registration, titles, etc.

8. Trailer Documents and maintenance i.e. registration, titles, etc.

9. Previous four quarters of IFTA (Fuel Tax) reports

How Does Knowing This Help You

• Gives you a better understanding of what your clients are going through, so you can better relate to them

• If you can provide them assistance, even if that is pointing them toward a resource, it increases your credibility and improves client loyalty

Questions?Contact Info

866-735-8411chris@ProgressiveReporting.cominfo@ProgressiveReporting.comwww.ProgressiveReporting.com