Great West Casualty Company Blog

WHAT TOWING RISKS EXIST IF MY TRUCK IS IN AN ACCIDENT AND I HAVE SPLIT COVERAGES? Having a driver involved in a crash is stressful in itself, but motor carriers may compound a bad situation if their liability, physical damage, and cargo coverages are split between multiple insurers. Splitting coverages invites confusion and communication breakdowns between parties involved. As a motor carrier anxiously awaits resolution of the claim, the disjointed parties involved must determine who has coverage for each claim and what the policy limits are, and then coordinate clean up, towing, salvage, and storage of cargo, to name a few tasks. Having one insurer handling all aspects of the claim is ideal. Avoiding split coverages for your operations can reduce the risk of unnecessary delays and inflated claim costs, and better protect the motor carrier from future litigation.

A load can be rightfully rejected for several reasons, such as the goods were not delivered at the agreed-upon time or shifted in transit and were damaged. When a load is wrongfully rejected by the consignee, such as rejecting the load due to alleged temperature abuse, missing seals, etc., this can create an uncomfortable and stressful situation for your driver as he/she is left to deal with an unsatisfied customer. In many cases, drivers are not allowed on the dock, so they may not even get the chance to contest the allegation. In other cases, your driver may be gone before word arrives that the load was rejected.

In today’s trucking environment, where high-dollar litigation has become the norm, driver managers are tasked with an ever-increasing burden to ensure drivers conduct themselves in a safe manner. This is quite challenging since drivers are out of sight most of the time, but technology is catching up to the trucking industry, and motor carriers should be happy about that. Sitting drivers down in front of safety videos is one of the least effective ways to change their behavior. For adults, it is best to show them their performance gaps (i.e., bad fuel economy, moving violations, etc.) and help them find solutions on their own. A proven way to do this is to combine technology and coaching.

 

In the frenzied pace of motor carrier operations, it is easy to get caught up in the daily grind and lose sight of fundamentals. For any business, three key elements are crucial to success: communication, teamwork, and planning. Revisiting each of these elements periodically is healthy for the entire organization and can help the company achieve its objectives. However, one area that motor carriers tend to ignore in varying degrees is safety. In the Spring 2019 issue of Safety Talk, we discussed how practical drift, an employee’s gradual deviation from established policies and procedures, can erode the effectiveness of a company’s safety efforts, and if allowed to continue unchecked, can negatively define the company’s culture. Senior management at a trucking company can contribute to this erosion as well. Here is an example: A motor carrier may become complacent or resistant to change because it hasn’t recently experienced a crash or injury. Management then adopts a mentality of, “If it ain’t broke, don’t fix it.” This type of mentality introduces risk into what may otherwise be a healthy organization. If management cannot attribute the company’s success to effective loss-prevention practices, it is essentially saying pure luck is responsible for the company’s performance. Regardless of past loss performance, no company can afford to rest on its laurels if it expects to remain competitive. A periodic review of basic safety practices is essential because new risks may be present that have not been accounted for. Whether a change in customers, equipment, commodities, or personnel, motor carriers should have a process in place to continually assess their risks and determine if current safety practices are sufficient. Below are some assessment methods.

Policies and procedures are necessary for high-hazard industries like trucking. They add structure and consistency to operations to ensure the highest quality product or service is being delivered. Unfortunately, a lack of oversight by senior management can cause the company’s policies and procedures to deteriorate over time and lead to a phenomenon known as practical drift.

There is a misguided belief by some motor carriers that delaying or failing to report claims to their insurers will work in their favor. On the contrary, it can have the opposite effect and cost a motor carrier more in the long run. Regardless of perceived fault, other parties involved in an incident have a legal right to assert a claim. For this reason, delaying or failing to notify your insurer of an incident can hinder its ability to proactively manage a claim and settle it in a fair and timely manner.

Measuring the financial impact of a loss cannot be underestimated by motor carriers, especially those with narrow profit margins. Typically in the trucking industry, each motor carrier relies on the loss runs provided by the insurer to gauge the severity of claims, but these numbers do not paint a complete picture of the loss impact on operations or the company’s bottom line.

Great question! According to Part 390.15(b)(1) of CFR Title 49 of the Federal Motor Carrier Safety Regulations (FMCSR) “For accidents that occur after April 29, 2003, motor carriers must maintain an accident register for three years after the date of each accident. For accidents that occurred on or prior to April 29, 2003, motor carriers must maintain an accident register for a period of one year after the date of each accident.”