for thousands of injuries and deaths annually. The numbers are staggering. Businesses that do not implement strict policies to combat driver distractions are at higher risk of experiencing costly claims. Some insurance carriers will decline to insure drivers with cell phone/hands-free violations. Risk Management Strategies to Reduce Insurance Costs To control insurance costs and improve their insurability, businesses must be proactive and take steps to improve their risk management. Some key strategies include: 1. Implement a Strong Driver Safety Program Establishing a formal driver safety program with driver acceptability standards, safety training and vehicle usage policy can significantly reduce accident frequency. Encouraging defensive driving techniques and enforcing policies against distracted driving can help lower risk. 2. Enforce a Distracted Driving Policy Businesses should develop and enforce strict policies against distracted driving, including restricting the use of mobile devices while driving. Some companies install telematics systems that disable phone usage when the vehicle is in motion or require hands-free technology. 3. Limit Personal Use of Company Vehicles. Implementing clear policies on who is authorized to operate company vehicles and monitoring personal mileage can prevent excessive wear and tear and reduce claims. 4. Usage of Personal Vehicle Insurance Requirements If your employees drive their personal vehicles on company business, It is a good policy to require proof of automobile coverage from your employees. Your insurance carrier may even require a minimum limit. 5. Review Insurance Policies Annually As the insurance market evolves, businesses should work with their broker to reassess their coverage needs. Maintaining a clean claims history and demonstrating strong risk management practices can lead to a better renewal. Conclusion With automobile insurance costs continuing to rise, businesses must adopt comprehensive risk management strategies to mitigate exposure and control expenses. By enforcing strict safety policies and vehicle usage guidelines, companies can enhance their insurability and reduce the financial burden of insurance premiums. Staying informed about market trends and working closely with insurers and brokers will be essential for navigating the evolving commercial auto insurance landscape in 2025.
Sources: • https://www.ciab.com/resources/q4-2024-p-c-market-survey/ • https://www.zywave.com/blog/2025-commercial-market- outlook-executive-summary/
• https://www.risk-strategies.com/state-of-the-insurance-market- report-2025-initial-outlook-2024-wrap-up • https://www.nhtsa.gov/risky-driving/distracted-driving
54 Premier Flooring Retailer D2 | 2025
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