• Keep Your Truck Insurance Costs in Line
• A Drivers Story - Safety Talk Audio Tape
• Concept Financial Group - Transportation Finance Needs
• Is That Cargo Covered
• Donations Made to Help Find Cures
• Have you Talked Safety with Your Truck Lately 
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Keep Your Truck Insurance Costs in Line

As you have probably noticed, read, or experienced by now - insurance rates are on the rise. The main reason for the increase is due to the increasing costs of claim settlements. We live in a litigious society and trucking companies, as of late, seem to be the target of choice for personal injury law firms. The reason law firms are focusing on claims involving commercial vehicles is that they know that with them come high auto liability limits. The minimum liability limit for an interstate motor carrier is $750,000 Combined Single Limit (CSL) and most trucking firms are carrying at least $1,000,000 CSL to satisfy shippers and afford additional protection of assets. A standard personal auto liability limit is usually as low as $30,000 to $50,000, so why mess around with a little money when you can go after the big bucks.

Personal injury law firms are not only searching out clients involved in accidents with commercial vehicles, but they are also becoming savy in their understanding of statutory and federal regulations (including hours of service violations, DOT inspection violations, and other truck related violations). These violations allow the plaintiff attorney additional ammunition in making their claim that this 80,000 lb rig caused their client injury due to driver error. A driver's motor vehicle record can be one of the most damning pieces of evidence in a bodily injury claim, showing a track record of "reckless" driving habits (speeds, DUI'S, failure to yield, and even equipment violations). This is the main reason that insurance companies are now insisting the trucking firms hire only drivers and owner operators with good driving records and clean accident history. The job to defend a trucker has become tough enough without throwing a poor driving record on the table.

Along with the increased settlements, including repair and part's costs, come increased premiums to help make up for the shortage of claims funds, as well as stringent driver, equipment, and procedural guidelines. However, there is a brighter side to this story. To control insurance costs companies and individuals can make sure they are taking the proper risk management steps to minimize their exposure to a serious claim or claim frequency. Some of these steps would include:

Hire good drivers. These are drivers with good driving records, good experience, and professional attitude

Train the drivers and educate and reeducate them. Thoroughly train and retrain your drivers in proper handling and securement of freight and familiarize them with your various traffic lanes. Educate them on the hazards of the increased speed limits and increased traffic on our roads and highways as being the major contributing factor to accidents. Get them involved in defensive driving courses!

Create a driver award and incentive program. Everyone likes to know when they are doing a good job and truck drivers are no different. Set up a driver award program, which we offer you help in implementing at no cost to you, and an incentive program. Give your drivers something to strive for and to be proud of.

Make drivers aware of losses. Discussing claims by committee or individually can help educate the drivers on how to avoid similar type claim situations in the future. Also, show the drivers and your insurance carrier that at fault claims will not be tolerated in your company by setting up your own minimum driver guidelines for violations and claims.

Review your insurance deductibles and equipment values. Taking on higher insurance deductibles will not only lower your premium, but will also make drivers more cautious if in your contract you are making them - particularly owner operators - responsible for claims deductibles. Also, review your equipment values as not to over insure your equipment.

Finally, sell all personnel on the fact that you want to be a safe company. When we shop your insurance the greatest selling item that we have is your loss ratio. (Loss Ratio = Premium Dollars Paid by you to the insurance carrier divided by Claims Costs Incurred). Insurance companies are looking for loss ratios of 50% - 70% or less, which means that they would make .30 - .50 cents on the dollar. This might seem like a lot, but insurance companies know that eventually the large claim will happen and the personal injury lawyers are banking on it.

-by Shawn Sullivan, CIC, President, Truck Writers, Inc. 
 
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There's a TRAINing a Comin' A Drivers Story - Safety Talk Audio Tape

This is a new Safety Talk Audio Tape coming to you in the next few weeks.  The Safety Talk Audio Tapes are safety meetings on wheels and are great safety tools to get the attention of each driver. It can be costly, time consuming and sometimes logistically unfeasible to get all the drivers home for in house safety meetings.  These are recorded and produced by top-notch professional drivers and safety consultants.  The tapes contain educational, informative, and interesting safety themes.   Most of you who have had a chance to listen to these tapes agree that they are getting out a powerful safety message.  For those of you who haven't had a chance; take them off the shelf, dust them off and get them out to your drivers. You'll find they really will listen and learn.

Many safety campaigns and programs try to paint the wall with one big swoop of the brush and hope that the outcome covers up as most of the walls marks and blemishes; at least look better than before you started.  But, trucks are driven one driver at a time and each driver has different levels of ability, training, and accident history.  With the driver shortage and insurance companies enforcing tougher driving standards, it is imperative you implement a system for driver training and education. This system should include:

A company policy that all claims be reported and recorded.

Driver expected to explain incident to company.

Review accident and decide if there was anything reasonable that could have been done to prevent accident.

Educate driver on preventive measures on this type of accident by using smart flyers or Prevent Plus software, Safety talk articles.

Outside training is available through Regional:  Drivers Meetings, Ethics and Technique classes and Defensive Driving Courses

Every job goes through changes and everyone needs to be updated, coached and taught what is going on in their work environment.   You will find that your drivers will appreciate the concern and time you spend assisting them in their chosen profession.

We would be happy to further discuss helping setting up your driver training programs or assisting you with any these products and services to get you on the right track cause there's a Training a comin'. Give us a call today.

- by Mike O'Neil, CIC, CPCU, VP-Sales, Truck Writers, Inc.
 
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Concept Financial Group for all your Transportation Finance Needs

With Concept Financial and Truck Writers you've got one source for the financing and insurance you need to keep your business rolling along.

This cooperative team approach has allowed us to better service you in a variety of ways: simply, we are a one-stop shop for all of your financial transportation needs.  This exclusive combination of financial resources and transportation services provides you the best possible package of business tools specifically tailored to your company's needs  while saving you valuable time and money.

We know the transportation business as well as the finance business.  With Concept Financial Group you have a financial partner and an accessible resource for valuable advice. Products Include:

Equipment Loans and Leases

Factoring

Accounts Receivable Financing

Commercial Real Estate Financing

Whether you are a large fleet operator or an owner/operator, we are committed to understanding your needs and tailoring a financing package to help you remain competitive both now and over the long haul.  When you are ready to expand your business or replace existing equipment, we welcome the opportunity to meet with you.  The best relationships are not those based simply on providing a service, but those based on the idea of partnership.   Please stop in, call, or e-mail Chris Johnson at chris@conceptfinancial.com

"We Achieve Our Goals When You Have Succeeded in Achieving Yours"
- by Chris Johnson, President, Concept Financial Group, Inc.
 
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Is That Cargo Covered?
Have you checked your cargo coverage lately?  If you're like the majority, you advise your agent of the limit you need at renewal and forget about it for the remainder of the year unless you have the misfortune of having a claim.  In most cases the cargo claim is handled without any problem, however, in some cases the claims don't go as smoothly as planned.

As they say, the devil is in the details, and in the case of cargo coverage the details are in the coverage form, the definitions and the exclusions.  Here are some lessons learned the hard way.

The first devil is the coverage form. There are two basic forms of coverage loosely defined as Broad Form & Specified Perils.  Broad Form, as its name suggests, pays for any loss to the cargo unless the loss is excluded or limited by the policy.  Specified Perils is a more limited form of coverage since it specifically lists the types of losses that are covered by the policy.  Lesson #1, Broader is Better.

A second devil is in the definition of cargo.  In most cargo forms, cargo is defined as: goods and merchandise of others in your care, custody or control for which you are legally liable under tariff documents, bills of lading or shipping receipts.  The definition specifically refers to the shipping documents as a requirement of the cargo coverage.  If you, as a trucker, do not make out a bill of lading or shipping receipt since the shipper does not require them, according to the insurance contract the claim can be denied.  Lesson #2, make out a bill of lading for EVERY load.

A third devil is in the exclusions.  Every insurance contract has its own coverage exclusions so we can't list everything that may be specific to your policy, but the more common exclusions exclude coverage from losses caused by:  delay in delivery, loss of use or market, dishonesty or criminal act of an employee, war/military action, mysterious disappearance or shortage.  Lesson #3, Know your Exclusions.

Another devil, which probably falls under the small print category, is the co-insurance penalty.  Briefly defined, if the cargo limit carried does not equal 100% of the value of the load,  the loss payment made by the insurance company is only a percentage of the total loss.  For example, if your cargo limit on the policy is $50,000 and the value of the load is $100,000, you are carrying 50% of the required limit and consequently only 50% of the loss would be paid by the company.  Not every insurance company enforces this penalty, but it highlights the importance of knowing the value of your load, Lesson #4.

At Truck Writers, we ask questions, evaluate your needs, and read contracts.  We will do our best to provide the best coverages for you at the best rates.  We need your help in knowing exactly what you are hauling, how you are hauling it and under what contracts.  The lowest premium doesn't always provide the best coverages; please read your policies.  We are here to help you decide which policy is best for you.

- by Jeff Sinn, Agent, Administrative Risk Consultants, Inc. DBA Truck Writers
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Donations Made to Help Find Cures
Employees dressed down and made a difference for Leukemia research. During the week of April 10th, the employees of Administrative Claim Service, Administrative Risk Consultants, Concept Financial Group, and Truck Writers participated in the Twin Cities' 10th annual DRESS DOWN FOR LEUKEMIA.  In exchange of a donation to the Minnesota Chapter of The Leukemia & Lymphoma Society, employees each received an official DRESS DOWN button.  This allowed them to dress casually for the week.  The companies matched the employee donations for a combined total of $1,110!

Leukemia is a form of cancer that strikes the blood-forming tissues in children and adults.  Thirty years ago, almost no one survived leukemia; because of dramatic research advances funded through The Leukemia & Lymphoma Society, childhood cure rates are approaching 80%.  For additional information, contact The Leukemia & Lymphoma Society at (612) 545-3309, ext. 103 or toll free at 1-888-220-4440, ext. 103.

On Wednesday, May 31, the Twin Cities Chapter of the Spinal Cord Society held its 11th Annual Scramble for a Cure.  This has been one of the best fund raising events for the Spinal Cord Society to help find a cure for spinal cord injuries.  Some exciting developments have been happening over the past couple of years and this year proves to be even better.  A new drug has been developed to help stop or lessen the effects of spinal cord injuries if given within the first 72 hours of paralysis.  Research and successes are being developed in the areas of neuronal regeneration and functional recovery of spinal cord injuries. Truck Writers has made a commitment to help in this research effort by making a donation of $6,000.

For more information on the Spinal Cord Society, please call 218-739-5252 or fax 218-739-5262.  Their focus is "Cure--Not Care" which you can learn more about in their monthly newsletters.

- by Lisa Burnside, VP-Information Technology, Truck Writers, Inc.
 
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Have you Talked Safety with Your Truck Lately?
Engine Electronic Control Modules (ECM's) are being used for post accident reconstruction and investigation. This engine technology was developed to provide useful engine maintenance information each as: fuel and oil consumption, idle time, brake application, RPM monitoring, number of quick stops, percentage running at maximum cruise control setting, etc. These modules are generally set to provide what type of information each individual trucking company wants to obtain from it.
One can get as specific as to were the blinkers on at the time of the accident. Even for the companies that set modules to provide overall broad information as per trip or per quarter, a guide to drivers' behavior can be surmised. Is this a driver always pushing limits or someone who is easy on equipment?

Each company should take a look at what their trucks are telling them. These EMC's have provided important information from the accident scene both against and in support of our drivers. Look at what information you currently use on the open road. By installing an EMC, you can sit back and let your truck tell you stories about their trips and about the driver it has been working, living and sleeping with.

- by Mike O'Neil, VP-Sales, Truck Writers, Inc.