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Insurance: one more reason to hire good drivers

Keeping insurance premiums down is a constant focus for small trucking companies. One Iowa transportation specialist says hiring good drivers makes all the difference.

Hiring just a few quality drivers is far preferable to having a lot of mediocre or bad drivers, says Tim Johnson. Johnson makes sure applicants -- whether they are drivers, mechanics or dispatchers -- undergo intensive screening before being hired.

Retaining good drivers makes good risk-management sense. Small fleets have the advantage over big ones because owners of small fleets can foster a more personal relationship with employees. Drivers who enjoy their jobs and feel appreciated will be more conscientious of their performance and of the trucks they're in.

One owner, who runs nine dump trucks, says he makes a point to scrutinize each employee, highlight safety training and keep equipment in top shape. "If something breaks, we fix it immediately," he says. Fewer losses mean lower insurance premiums since premiums are partially based on loss experience.

One management consultant says safety programs should be seen as a buoy to a carrier, not as a weight on the bottom line, because such programs can reduce premiums. "Safety should be looked at as a profit center in the company, rather than the cost center," Chuck Petinga says.

Experts say safety programs must reach everyone in the company from new drivers to seasoned veterans. Management should ask drivers for feedback and measure their performance to see whether safety programs are having a positive effect.

"Without making the investment in a good safety program, you are only hoping you will get lucky year after year," Johnson says. "That is no way to run a long-term successful business."

Source: Roemer Report. Used with permission.

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