Posted on November 29, 2018
The transportation industry can be rewarding for all those involved, but that does not mean things will always run smoothly. One of the experiences that many transportation companies have an issue with is dealing with DOT regulatory compliance. Sure, a transportation company understands the importance of compliance audits, but they may not have much experience dealing with them. You can increase your chances of a positive experience by preparing. The following tips will help you do just that.
Tips To Prepare for a Compliance Audit
The first thing you should understand is you do not necessarily have to be in the transportation industry to be audited. Construction companies, for example, can also be audited. The simple fact is if your gross vehicle weight rating or combination weight rating is more than 10,000 lbs, then you are going to be regulated by Federal Motor Carrier Safety Regulations (FMCSR).
You should understand the process of the audit, which is usually broken up into different categories of inspection, like the general inspection or the driver inspection.
The General Audit
The first thing you should remember is that documentation regarding liability coverage–specific to the cargo and type of vehicle used–must be shown. You can find an official schedule of limitations on Section 387.9 of the FMCSR.
You will also need to produce the MCS-90 or MCS-82 form, which is usually provided by your insurance provider or representative. The auditor will also ask for the DOT recordable accidents or your company’s accident register. The auditor is looking to make sure that accidents are being recorded. You must have this form, even if the company has not suffered an accident.
The Driver Audit
The driver will also be a point of interest for the DOT regulatory compliance audit. You will be expected to produce commercial driver licenses, driver qualification, and drug and alcohol testing. It will also be important to show any training that drivers are given to upkeep their qualification as a driver.
The auditor will ask to see documentation showing that you are keeping track of the expiration dates on licenses.
Another area that your auditor will be going over is if you and your drivers have been compliant in things like a pre-employment drug test as specified by 382.301 section of FMCSR. Documentation on post-accident drug and alcohol testing is also required. Section 382.305 states that random drug and alcohol testing is necessary. And section 382.307 asks that you act on reasonable suspicion.
It is your responsibility to produce safety performance history, as well as drug or alcohol results. You will also need to show certifications, the results from road tests, and show proof of any entry-level training that your drivers have received.
You can read the DOT regulatory compliance audit procedure at FMCSR for more specific information. Keep in mind that the inspection will also include an audit on operational, vehicle, hazard materials, and accident inspections–in addition to the inspections mentioned. The key is to be prepared and informed to make the DOT compliance audit go as smoothly as possible.
Posted on November 23, 2018
Businesses have no choice about getting 18 wheeler insurance for their fleet. This is mandatory according to the law. It is also a smart move given all of the things that could happen on the roads. However, policies can cost several thousands of dollars per year. Reducing this expense is a priority for many.
Factors that Affect Cost
A number of things are considered when insurance providers calculate premiums but it all boils down to risk. If you are found to be at a high risk of getting into an accident, then you will have to pay more for the service. If you have the profile of a safe client, then you will pay less. This is why driving records are vital. Avoid traffic violations for undesirable behaviors like speeding, DUI, and distracted driving. Diligence, discipline, and adherence to the rules of the road definitely pay when it comes to insurance.
Experience behind the wheel is another factor. Younger drivers tend to pay more than older ones with proven track records. Veterans have already gone through a lot after years of plying their routes. They can be entrusted to exercise caution as demonstrated by their record. The location and radius of operation are going to be considered as well. There are areas which are known to be prone to collisions according to statistics. Going through these will bump up the cost. In general, driving more miles equals more payments because of the longer exposure to dangers.
Of course, the value of the truck will be among the prime considerations. Brand new ones with excellent features will cost more to insure than older models. Providers will also look into credit rating. Those with a good rating can pay less since they are likely to continue payments without fail given their financial record. Those with a bad rating will pay more but this can be lowered over time as the credit record improves.
Types of Coverage
There are several types of coverage that can be included in an 18 wheeler insurance policy. The biggest cost will be incurred due to the primary liability. This kicks in when drivers cause an accident and have to pay for damages. This includes bodily injuries and property destruction. Large trucks can cause massive damage so drivers have to be extra careful to avoid collisions. There are also liabilities that can arise even without collisions. An example for be wrong deliveries. General liability coverage can take care of these incidents. Umbrella policies offer liability coverage for situations not tackled by the others.
Physical damage coverage, on the other hand, is inward-looking. It will pay for the damages to your own truck after involvement in a collision. Issues from theft and vandalism are also covered. It ensures that the vehicle can be quickly serviced to resume normal operations. Bobtail insurance is meant to cover a tractor but it must not be attached to a trailer. Cargo insurance is also available to pay for problems incurred by the goods being carried while in transit. For example, some might be stolen or get damaged along the way.
Trucks may also get damaged due to the fault of other motorists. Ideally, the other driver’s liability coverage can pay for the repairs. In case there is none, having uninsured motorist coverage will take care of the issue nonetheless. Lastly, occupational accident coverage protects drivers who are considered independent contractors. This takes the place of worker’s compensation in the event of work-related problems. Drivers can depend on this to pay for medical bills and other needs.
Cost Reduction Tips
Lowering the 18 wheeler insurance cost is possible with a bit of effort. You should cast a wide net before making a choice. Study the offers of different providers as their appreciation of your risk factors will vary. Some will ask for more while other will ask for less. Get as many quotes as you can and go for the cheapest one. Of course, you should also think about things such as customer service and ease of claims. The low cost will not be worth it if getting claims is troublesome. Look for feedback from past and current customers to learn more about their valuable insights.
Ask for discounts. Don’t hesitate to inquire about the kinds of rate cuts available for clients. You might be able to qualify for a number of them and reduce your insurance costs significantly. For instance, if you pay on an annual basis, the price will be much less than the usual monthly rate. Anything that lowers the risk of defaults, minimizes the possibility of accidents, and brings more business to the company can merit a discount. Getting insurance for more vehicles will reduce the average cost for each one. Using devices that enhance security and safety will also be appreciated.
