A Tale of Two Crashes and the Change in Public Attitude. COVID & Inflation Fueled...

Navigating Auto Insurance Challenges

In the evolving landscape of auto insurance, business owners find themselves grappling with rising costs and increased liability claims. While inflation impacts various aspects of business operations, two specific accident types stand out as significant contributors to loss records:

(1) Full speed rear-end collisions, and

(2) Low-speed fender-benders

These seemingly mundane incidents can have far-reaching consequences for employers, insurers, and drivers alike. ?

Rear-End Claims: A Double Whammy

Rear-end claims?pose a unique challenge for employers. Not only do they result in auto liability and physical damage claims, but they can also lead to workers’ compensation claims if employees sustain bodily injuries.

Picture this: You’re driving behind a flatbed tow truck, its razor-sharp rear dangerously close to your sedan’s chin level. Vigilance becomes paramount. Keep your distance and don't lose your head!

My mantra when following any vehicle, especially flatbeds, is simple: “Stay back, stay intact. Count to four.” This is an easy affirmation to share with your family members and employees. ?

?

The Surprising Impact of Low-Speed Fender-Benders

Traditionally, low-speed fender-benders were minor inconveniences—bumper replacements and perhaps a friendly Dunkin Donut’s coffee reimbursement. However, the COVID pandemic and subsequent economic inflation have shifted attitudes dramatically. Isolation and economic strain have left people angry and on edge. Add an aging population with pre-existing injuries, and suddenly, even minor impacts—ones that wouldn’t trigger an airbag—result in policy limits demands from plaintiff attorneys. And if you carry high limits and an umbrella policy, the sky is the limit!

What used to be a straightforward fender replacement now spirals into multi-year litigation. While many injury claims are legitimate, there’s also a tendency for plaintiffs to overstate their injuries, hoping for a quick pay-day settlement. For the insurance carrier, deciding whether to settle or litigate becomes a delicate dance, considering case facts, the aggressiveness and resources of the plaintiff’s law firm, and the court venue’s level of plaintiff friendliness.

?

Strategies for Safer Roads

To succeed, business owners must prioritize safety. Train employees to stay alert, drive cautiously, and protect themselves by maintaining a safe distance from the vehicle ahead. My mantra here: “Heads up, don’t bump.” Telematics and driver coaching play crucial roles in risk management. What was once an “extra” program is now becoming the norm for commercial fleet owners, along with robust driver MVR criteria. Additionally, newer vehicles equipped with automatic emergency braking systems (AEB) can reduce collisions autonomously. While AEB adoption grows, it remains incumbent upon employers to instill a “zero tolerance” mindset toward auto accidents—aiming for zero incidents, even if perfection is elusive.

Business owners and insurers grapple with the frustration of both distracted driving and low speed fender-benders. Yet, amidst this complexity, proactive measures emerge:

• Training and Vigilance: Empower employees to drive safely, paying attention and maintaining distance. A mantra for auto spacing: “Stay back, stay intact. Count to four.” And for intersections: “Heads up, don’t bump.” Sometimes remembering a short phrase can make a tall difference!
• Telematics, Driver Coaching and AEB: Monitor driving behavior, coach drivers, and embrace technology like Automatic Emergency Braking (AEB). Safety is our compass.
• Zero Tolerance for Accidents: While zero accidents may elude us, embedding a safety mindset with your team is a valuable and worthwhile goal. I'd encourage reminding your team that even with a low-speed accident, you don't know the medical condition of the driver ahead of you. And many of us over 40 yrs. old already have an existing back or neck issue. Keep safety in the front of their minds, especially while driving.

Ultimately, collaboration between employers, employees, insurance agents, and loss control consultants can reduce rear-end accidents, making our roads safer and ensuring workers return to their loved ones unharmed each day (and keeping you out of needless, time-consuming litigation to boost).?

Disclaimer: Opinions are the author’s own. The information provided in this article is for educational purposes only and does not constitute professional advice. Always consult with experts and tailor risk management practices to your specific project needs.