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Business Solutions Center
How to Reduce Your Business Auto Insurance with Loss Control Including Telematics
Business auto insurance is designed to protect businesses from injuries caused to others by you or your employees while driving. Coverage may include liability, medical payments, collision, uninsured/underinsured motorist coverage, coverage for employees using their own cars for business, and coverage for rented/borrowed vehicles that are used for business.
You can take a look at different coverages offered by Nationwide by business type here.
Beyond coverage, however, businesses that utilize drivers should be seriously considering their loss control plans, which can not only save your company money directly in the event of an incident, but can even reduce your business auto insurance.
April is National Distracted Driving Awareness Month, and if you're a business owner or manager, it's a good time to evaluate your company's approach to handling the issue.
According to the United States Department of Transportation's National Highway Traffic Safety Administration (1), distracted driving claimed the lives of as many as 3,166 people on U.S. roads in 2017, the latest year on record. Here are some more alarming stats.
Distracted driving is not only dangerous to people on the road; it's also a threat to your business. Beyond potential fatalities and injuries of workers, damages that occur and potential lawsuits can put major financial strain on your operations. Distractions like cell phones and GPS units often lead to wrecks. Many work vehicles make distractions even riskier due to visibility and handling issues, particularly with some trucks or vans.
It's crucial that your drivers understand the risks and operate vehicles with the utmost regard for safety. Driving policies should be well documented and demonstrated to anyone driving for your business. These should actively work to reduce the potential for distraction. Make use of a service provider app that detects when drivers are moving and responds automatically for them by sending a message that explains the person is driving and will return the call/text once they are stopped. Drivers should be instructed to respond to calls when safely parked. Make sure they also understand that taking their hands off the wheel and talking to passengers also count as distractions.
Telematics can serve as a big part of a loss control plan for a business that relies on employees driving. The data they provide can help your business and the insurance provider pinpoint critical moments and behaviors that result in incidents.
Later this year, Nationwide will release a telematics solution for business auto customers. Last year, the company hired Peter Frey, a commercial telematics director with more than 20 years of experience to oversee this part of the business. In December, Nationwide announced a partnership with Lytx to offer its DriveCam safety program for fleet managers of long-haul trucking members.
“With 100 billion miles of driving data, proprietary analytics and human-review processes, the Lytx DriveCam safety program is the industry leader in video telematics, proven to decrease risky driving and collision-related claims by up to 80 percent,” said Eliot Feldstein, Lytx senior vice president, Corporate and Business Development when the partnership was announced (2). “We’re delighted to be chosen by Nationwide’s excess and surplus specialty commercial auto team to partner with them in supporting their insured fleets to reduce claims, and keep their drivers, cargo and our roadways even safer.”
This "pop quiz" from Lytx illustrates an example of how video telematics of this kind can make a difference:
Nationwide offers three months of the Lytx DriveCam® safety program as well as the Lytx® Fleet Tracking program enhancement for free for 90 days in addition to dedicated loss control team support, data analysis, guidance, and even coaching for driver improvement.