Author, Greg Garcia, Account Executive, Rancho Mesa Insurance Services, Inc.
From an insurance premium standpoint, one of the largest cost for any landscape company would be the auto policy, and for good reason. According to the National Highway Traffic Safety Administration, a motor vehicle crash happens every 12 minutes. Of course, not all those accidents are from landscapers, but it’s still a staggering statistic none the less.
For all auto insurers, their combined ratios (claims dollars/premium) for this line of insurance is typically above 130%. Thus, for every dollar collected in premium they are on average paying out $1.30 in claim costs. These high claim costs are due in part to larger settlements being paid out for bodily injury, higher replacement costs (parts/labor) for the vehicles, etc. As a result, auto insurance premiums are rising overall and in some cases those increases are significant.
While an individual company can have little impact on the industry as a whole, there are a few areas landscape or other businesses can be aware of that will help defer or reduce premium increases for them.
The following are a few common mistakes landscape drivers are making to create an unsafe driving environment:
Distracted Driving – This is by far the most common mistake any driver can make. It is imperative that your employees remain focused while operating a vehicle. The number one cause of distracted driving comes from cell phone use while driving a vehicle.
Traveling at unsafe speeds
Following too closely behind another vehicle
Best in class landscape companies understand the importance of fleet safety and really hone in on their fleet safety procedures.
Some of the things the top landscape companies are doing to help keep auto accidents to a minimum include:
Maintain your vehicles - Always take care of your vehicles, making sure everything is running properly. Complete regular inspections (daily, weekly, and monthly). Keep accurate maintenance logs and check for tire and brake wear. Vehicle maintenance and care is an important safety component, and helps reduce the chance of an auto accident.
Fleet Safety Program - Create a written company Fleet Safety Program and provide driver safety trainings to all employees. The Fleet Safety Program must detail leadership’s expectation of what is required to be a driver for the company and what the consequences will be if the procedures are not met. Driver trainings should not be a “check list” item, meaning you do it once and then you forget about it.
For the Fleet Safety Program and the driver trainings to be effective and successful, they need to be a recurring training topic.
Watch our Fleet Safety: Above and Beyond Compliance webinar to help you get started with your Fleet Safety Program. Your Client Services Coordinator will be happy to provide tools to help assist you in building your program.
By taking a serious look at your current fleet safety procedures and making necessary changes, you will not only lower your annual premiums on your auto policy, but you will also create a safer environment for your employees.
If you have any questions or want to discuss your risk management needs further, please reach out to me at ggarcia@ranchomesa.com and I will be happy to help you.