Accident prevention key to cutting insurance costs

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.