Reduce your risk, reduce your costs
Your vehicle fleet plays a pivotal role in your company’s ability to deliver on its customer promises. While vehicles and drivers are critical to achieving business success, they also have the potential to negatively affect your organization. They bear risk, exposure, costs and harm to your brand strength.
When your job involves managing fleet finances and risk exposure, you become a key player in the mission to manage risk and the associated impact. Are you doing everything you can to control this exposure and related spend?
Accidents and associated costs, including auto insurance premiums, self-funded claims, insurance deductibles, workers’ compensation, medical benefits, and accident investigation typically account for 15 percent of your total fleet costs. That’s your Total Cost of Risk. That figure doesn’t even reflect the other indirect threats to your company’s brand and client portfolio. Let’s talk about what you can do to help successfully complete your mission of mitigating risk.
Three tips for plotting a safer course
The basic foundation for managing your company’s Total Cost of Risk is communication. By distributing and enforcing a safety policy among drivers, you are setting expectations for behavior, performance, and defining your measurements for success.
With your safety policy in place and expectations set, follow these three tips to further reduce vehicle and driver risk, and thereby your costs as well.
- Start with a fleet safety program
Rolling out a fleet safety program will help you identify risky drivers by monitoring the infractions that appear on routine Motor Vehicle Record reports. By understanding where a driver needs to improve, you can assign training to correct their behavior and help prevent future insurance claims.
- Sprinkle in some telematics magic
The use of telematics technology, such as in-dash transmitters and onboard cameras, adds a proactive element to your safety program. By monitoring real-time driver performance, you can gain valuable insight to risky behavior and safety policy violations. The devices add an additional layer of clarity that enables you to notify a driver swiftly when their behavior is not in compliance with your corporate fleet and safety policies. Then you’ll apply the training and testing features of the fleet safety program to change driver behavior. In addition, video footage of accidents captured by onboard cameras can be a valuable tool for resolving claims more quickly.
For most fleets, the pairing of a fleet safety program and telematics technology can reduce accident rates. Mitigating costs and downtime is always a good thing for your customers and your organization! But there’s one more area where you can reduce your fleet spend that isn’t always explored: your insurance policy.
3. Negotiate insurance rates using your data
What if you could prove how quickly you are putting your safety program to work in response to real-time telematics data that alerted you to a driver’s risky behavior? This can be a difficult proposition because a driver safety policy alone isn’t enough to garner a reduced rate for your commercial insurance, and simply having telematics technology doesn’t demonstrate that you’re keeping driver behavior in check.
The secret to driving down rates is hidden in your data. By producing reports that show how the two strategies combine to elevate your risk management techniques, you’re building a compelling case that your insurance partner can leverage toward reducing your premiums. Your executive team will also certainly appreciate your aptitude and creative approach for reducing costs!
Building the right team for your mission
ARI is part of the Holman Enterprises family of automotive companies, along with Holman Risk Partners. Commercial insurance specialists at Holman Risk Partners work with a screened selection of insurance companies that understand the value of a strong driver policy that’s bolstered by real-time data and targeted training. When you combine the competencies of our companies, you have access to industry experts and advanced technology to deliver on your professional responsibilities to reduce risk and exposure, control costs, and protect your brand.
This was the case for one procurement director. Today she is using ARI’s safety products and quarterly reports plus the backing of Holman Risk Partners to validate for both her company and her insurance provider how she’s implemented best practices to reduce the Total Cost of Risk. Read this success story.
Already have a broker? No problem! We can be your consultant, too. Does your current agent or broker have the knowledge, experience or relationships to present a case to your insurance carrier for reduced insurance premiums in light of an integrated safety program and telematics solution? If not, our commercial insurance specialists can provide that support.
It’s launch time!
In your mission to help your company meet its business objectives by minimizing TCO through risk, you’re responsible not only for avoiding threats, but also finding improvement opportunities. Re-assessing commercial vehicle insurance rates is one area that many fleets overlook. With the right tools in place to reduce your risk, and a team that knows how to leverage the tools with insurance companies, you will reduce your costs. Learn more about how to lower your costs through risk mitigation.