Accident prevention key to cutting insurance costs

Nov. 1, 2004
Bill Robertson lays it out pretty bluntly for fleets: If an accident costs you $25,000 and your profit margin is only 2%, then your operation has to generate an additional $1.25 million in revenue to pay for the losses. Accident prevention is critical to fleets, both in terms of reducing their overall cost of operations and their insurance costs, said Robertson, a risk management consultant for Alabama-based

Bill Robertson lays it out pretty bluntly for fleets: If an accident costs you $25,000 and your profit margin is only 2%, then your operation has to generate an additional $1.25 million in revenue to pay for the losses.

“Accident prevention is critical to fleets, both in terms of reducing their overall cost of operations and their insurance costs,” said Robertson, a risk management consultant for Alabama-based Barksdale Bonding & Insurance. Robertson spoke at McLeod Software's 14th annual User's Conference earlier this fall.

Robertson suggested that fleets consider the following: develop policies and procedures regarding accidents; pay more attention to the driver hiring process; refocus efforts on driver training; and ensure that upper management fully supports the accident policies.

“From my experience, rewarding drivers for accident-free performance can be a powerful motivator,” Robertson said.

About the Author

Sean Kilcarr | Editor in Chief

Sean previously reported and commented on trends affecting the many different strata of the trucking industry. Also be sure to visit Sean's blog Trucks at Work where he offers analysis on a variety of different topics inside the trucking industry.

Sponsored Recommendations

Reducing CSA Violations & Increasing Safety With Advanced Trailer Telematics

Keep the roads safer with advanced trailer telematics. In this whitepaper, see how you can gain insights that lead to increased safety and reduced roadside incidents—keeping drivers...

80% Fewer Towable Accidents - 10 Key Strategies

After installing grille guards on all of their Class 8 trucks, a major Midwest fleet reported they had reduced their number of towable accidents by 80% post installation – including...

Proactive Fleet Safety: A Guide to Improved Efficiency and Profitability

Each year, carriers lose around 32.6 billion vehicle hours as a result of weather-related congestion. Discover how to shift from reactive to proactive, improve efficiency, and...

Tackling the Tech Shortage: Lessons in Recruiting Talent and Reducing Turnover

Discover innovative strategies for recruiting and retaining tech talent in the trucking industry during this informative webinar, where experts will share insights on competitive...

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!