Each year, a variety of market forces have a direct impact on insurance prices for commercial fleets. Factors both within your control and out of your direct control continue to affect insurance rates, it’s important to examine some of the biggest trends:
- Court awarded compensation for accident victims—that often exceed $10 million or more will continue to drive transportation insurance losses.
- Continued compliance with trucking regulations will be key for employers, particularly as Canada’s ELD mandate is expected to come into force in the near future. Electronic Logging Devices (ELDs) are used to track the time a commercial vehicle is operating.
Managing drivers and their behaviors as well as staying on top of compliance issues has the greatest impact on achieving and maintaining competitive rates. ELD’s are a tool that definitely should be used to help in these two areas.
- In an effort to improve highway safety, Canada’s transportation ministers have agreed to develop a mandatory entry level training (MELT) standard for all new commercial truck drivers. This standard was made effective March 1, 2019 in many provinces for all new Class 1 and 2 commercial drivers.
To help manage your risk and keep your rates in check, regularly train commercial drivers on compliance and safety concerns. Strong risk mitigation practices will be key for organizations looking to reduce their rates. Tracking is only a part. Managing and changing driving behaviors is key.
Contact Foster Park Brokers to discuss your commercial fleet and ensure that you proactively address exposures.