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Advances in Automation Are Helping the Commercial Trucking Industry Avoid Negligent Hiring Claims

March 19, 2021 | By ClearConnect Solutions

One of the biggest issues facing the commercial trucking industry today is negligent hiring. Bad drivers mean more claims, and that means higher fees across the board. But by leveraging access to MVR reports and understanding underwriting requirements for drivers, the industry is in a position to “think forward.”

On February 25th, ClearConnect hosted its second Town Hall session about The Future of Commercial Trucking to discuss not just the outcomes of negligent hiring, but the underlying issues and how to approach remedying them with the current options available to the industry. ClearConnect President, Scott Grandys, was joined in this discussion by Idi Clark, founder and owner of Rhema Transportation, James Fleming, Managing Director of Graphite Underwriting, and Keith Dunlap, Senior Vice President and practice leader for Transportation at Gallagher Bassett.

Clark’s company is insured through the TIP National ClearCoverage program and he offered a unique perspective on actually implementing a compliance program, calling it one of the hardest things he’s had to do as a business owner, but 100% worthwhile.

“The program eliminated drivers that I should have gotten rid of and helped bring on amazing ones,” Clark said. “As a business owner, I have less worries and I sleep better at night knowing that the drivers I have on the road are the best candidates.”

Here’s a short clip of Clark talking about the process and the range of emotions he went through to implement it.

 

 

Fleming added a unique underwriting perspective to the conversation because one of the services they offer through ClearConnect is an MVR “Pre-Check.” It’s proving to be a game-changer for fleets and insurers looking for more compliance tools to use in addition to telematics. As Dunlap followed up and noted about the claims management process, “What we’re really talking about is risk management, and driver vetting is probably more important today than at any other point in my career.”

While Idi illuminated the real-world impact of a compliance program, Grandys further elaborated on what’s possible today with technology and automation, specifically calling out how monitoring services can be applied to the MVR and the background screening process. Here’s a quick clip of Scott discussing why that is important for all parties involved in the hiring process – and the future of the industry.

 

 

Below is a list of questions that our panelists answered during the hour-long Town Hall (not listed is some of the side-bar conversation among the panelists as they added their perspective).

To access the full recording, click here. If you haven’t already, subscribe to our email list to make sure you’re the first to know about Town Hall #3.

(7:03) James Fleming – Underwriting Criteria & Why MVRs Matter

  • Can you walk us through the importance of driver underwriting requirements when it comes to insurance programs?
  • Why are Motor Vehicle Reports important?
  • How often do you find out that drivers don’t meet underwriting requirements after something happens? What does that mean to the insurance supply chain?

(16:07) Keith Dunlap – Driver Vetting & The Aftermath of a Claim

  • What does a fleets’ driver vetting process have to do with claims management?
  • Can you draw a parallel between negligent driver hiring and claims?
  • What types of things should fleets beware of in a drivers’ Motor Vehicle Report, Background Check and Drug Screen results?

(29:53) Idi Clark – Benefitting from Compliance-Focused Programs

  • You recently bound a compliance focused insurance program for your fleet. Tell us about the steps you had to go through to get coverage.
  • What was your initial reaction to the insurance compliance process?
  • Has he insurance compliance process helped you? If so, how?

(41:28) Scott Grandys – How Technology & Automation Are Changing The Trucking Industry

  • Are there any new features available for Motor Vehicle Reports and Background Checks?
  • What are your thoughts on the FMCSA Drug Clearing House?
  • How can the trucking and insurance industries use new technology around Motor Vehicle Reports and Background Checks to reduce risk and improve performance?