Good article however I thought there should have been some mention of telematics. If you are interested on telematics and it’s impact on commercial automobile insurance please don’t hesitate to contact me.
many years ago, had a consulting client that had a really bad debt mod. The insurance agent had no suggestions on what to do. I reviewed the past 4 years loss runs, and the solution was obvious. The mod was due to numerous small property damage claims. This was a delivery company, and the drivers just couldn’t stop running under awnings. Not real expensive to fix, but not cheap either. And the frequency. What did we do? Put a $5,000 deductible on the property damage liability cover. And, implemented a personnel policy change that said that any driver having a claim due to failure to read the height sign, would be charged $1,000 of the deductible. Within one month, all claims had stopped. The insurance company was required to recalculate the mod with the deductible change. The mod flipped from a debit to a .85 credit. Saved thousands. Drivers Must have an incentive. Safety programs don’t usually work. Paycheck deductions do. Yes, its legal.
Good article however I thought there should have been some mention of telematics. If you are interested on telematics and it’s impact on commercial automobile insurance please don’t hesitate to contact me.
Thanks
many years ago, had a consulting client that had a really bad debt mod. The insurance agent had no suggestions on what to do. I reviewed the past 4 years loss runs, and the solution was obvious. The mod was due to numerous small property damage claims. This was a delivery company, and the drivers just couldn’t stop running under awnings. Not real expensive to fix, but not cheap either. And the frequency. What did we do? Put a $5,000 deductible on the property damage liability cover. And, implemented a personnel policy change that said that any driver having a claim due to failure to read the height sign, would be charged $1,000 of the deductible. Within one month, all claims had stopped. The insurance company was required to recalculate the mod with the deductible change. The mod flipped from a debit to a .85 credit. Saved thousands. Drivers Must have an incentive. Safety programs don’t usually work. Paycheck deductions do. Yes, its legal.