May 7, 2024
Effective Post-Accident Procedures to Help Manage Insurance Costs
Motor carriers face escalating expenses, with insurance rates surging by over 50% in the last decade, far outpacing freight rate increases. As revealed by the American Transportation Research Institute, truck insurance premiums continue to climb, putting pressure on carriers to find ways to mitigate risk and control costs.
Andrew Haun, Senior Vice President of Sales at Reliance Partners, emphasizes the pivotal role of robust post-accident procedures in reducing risk for carriers. From immediate response protocols to thorough documentation, these procedures are vital for demonstrating reliability to insurance providers.
Delaying reporting to assess internally can signal negligence to insurers. Familiarity with insurers’ claims reporting procedures is essential to ensure no crucial information slips through the cracks. Swift resolution of claims before litigation can significantly benefit both carriers and insurers, averting costly legal battles.
Balancing a strong safety culture with cost management poses a challenge for carriers. Haun acknowledges the complexity of this task, commending carriers for navigating multiple responsibilities daily. However, he underscores the importance of prioritizing effective post-accident procedures to minimize risk and costs.
Carriers often hesitate to report minor claims, fearing repercussions on future insurance costs. Yet, insurers value proactive engagement and adherence to established procedures, viewing them as indicators of a commitment to safety and risk reduction.
High loss frequency and ratios can indeed inflate costs substantially. Haun advises carriers to consider adjusting deductibles with guidance from their agents, offering a strategic approach to managing expenses without compromising coverage.
To read the full article on optimizing post-accident procedures and navigating insurance challenges, visit Freight Waves.
Click here to discover how Reliance Partners can support your risk management strategies.
