A second step in implementing a Fleet Safety Program is to give safe driver training. There are a variety of ways to train drivers but the best training topic to explore is distracted driving because it’s the number one reason insurance carriers are increasing auto rates. Another topic very useful for commerical drivers is Accident Investigation training. In the case of the companies I insure, we’ll bring in experts to help train your drivers at no cost.

Explore alternative insurance options if the employee is too valuable to let go. There will be a cost to your bottom line, but in many situations, it is preferable to eat the cost rather than let valuable employees go.

Opening a separate insurance policy for a driver is an option. There are some circumstances where insurance carriers will outright refuse to insure certain drivers. In these cases, an insurance agent can go to market with a carrier such as Progressive for a one-off driver policy. Costly, but often the only acceptable option.

Some situations can be fixed by changing work arrangements around. One solution to keep an employee with a bad driving record is to change their role by partnering them up with an employee who is able to drive. In some situations, your company will be able to have the employee drive his or her own vehicle. While not usually the ideal solutions for your company, it will often appease insurance carriers and keep your coverage in place.

Companies going through these situations often entertain thoughts that insurance carriers are being overly harsh or risk averse in threatening premium hikes or non-renewing their coverage. The truth is underwriters are facing a hardening market on auto rates. It might actually come as a shock to some businesses to know that your vehicles are the single largest exposure to your company and your insurance carrier.

Insurance carriers have been losing money on auto insurance for years. The reason is that workers’ compensation claims have state-mandated limits, while auto liability does not. Innocent people hit by commercial vehicles often bring legal action. The consequences of distracted driving combined with our increasingly litigious society is the main driver behind increasing rates.

Screening employees and having a formal Fleet Safety Program is the best way to avoid a 15% auto increase or non-renewal. That said, when a company is against the wall and needs to keep an employee on the solution is to explore opening an additional policy or change their working arrangement.