This document discusses how insurance agents can help improve fleet safety by understanding DOT compliance requirements. It covers topics like CSA scores, DOT audits, and IFTA fuel tax reporting. Understanding these safety programs allows agents to act as safety consultants for clients, improving public safety, reducing insurance risk, and building client loyalty. Proper driver hiring, safety policies, and score monitoring can help fleets manage CSA requirements and avoid negative consequences of non-compliance.
2. Topics
• Why Safety Is In A Fleet’s Best Interest
• DOT Compliance
– CSA (Compliance, Safety, Accountability)
• SMS (Safety Measurement System)
• Data Q
– DOT Audits/Compliance Reviews
• IFTA/Fuel Tax Reporting & Registration
• How does this knowledge help you
3. Why Such A Push For Safety
• Commercial Vehicle Statistics for 2011:
– 4,000 fatalities nationwide
– 400,000 injuries nationwide
– 22 fatalities in Utah
4. Why Insurance Agents Get Involved
• Improved Public Safety
• Reduced Risk For Insurance Carrier
• Develops Loyalty Toward the Agency
• Higher Profit For Everyone
5. How Insurance Agents Get Involved
• Be A Safety Consultant
– DOT Compliance
– CSA Score Management
– DOT Audits
6. 1. CSA (Compliance, Safety, Accountability)
ATRI (American Transportation Research Institute) survey ranked
CSA as the #1 concern for trucking companies in 2012.
2. DOT Audits
They are relatively simple if you are prepared, but are a
nightmare if you aren’t. An audit that turns our poorly will cause
you long term problems that can last for years. New companies
that have problems with their new entrant audit are significantly
more likely to go out of business.
DOT Compliance
7. CSA What Is It-Compliance, Safety, Accountability (CSA) is a Federal Motor Carrier
Safety Administration (FMCSA) initiative to improve large truck and bus safety and
ultimately reduce crashes, injuries, and fatalities that are related to commercial motor
vehicles. It’s primarily focused on helping FMCSA improve its enforcement operations.
“Motor carriers are paying more
attention than ever to their safety
performance.”
–FMCSA Administrator, Anne Ferro
8. How Does CSA Improve Safety
• Identifies motor carriers with poor safety
practices
• Pressures such carriers to improve practices
• Escalates intervention if saftey practices do
not improve sufficiently
• Can result in motor carrier being placed out
of service
9. How Does CSA Work
• Measurement (Via SMS-Safety Measurement System)
– Roadside Inspections, Traffic Violations, Crashes
• Evaluation
– Which carriers need what type of intervention
• Intervention
– How the FMCSA or State Partners will get involved
13. Consequences Of Bad BASIC Scores
• Early Contact
– Warning Letter
– Extra Roadside Inspections
• Investigation
– Offsite Investigation
– Onsite Focused
– Onsite Comprehensive
• Follow-On
– Cooperative Safety Plan
– Notice of Violation, requires a Corrective Action Plan
– Notice of Claim, Involves Civil Penalties
– Operations Out-of-Service Order
14. Evaluation
• The system identifies which carriers require
what type of intervention, using a policy-
driven process called intervention selection
• It then determines which carriers should be
deemed "Unfit" to operate, using a regulatory
process called Safety Fitness Determination
(SFD)
16. Intervention
• Early Contact
– Warning Letter
– Targeted Inspections
• Investigation
– Offsite
– Onsite Focused or Comprehensive
• Follow-on
– Notice of Violation, requires a Corrective Action Plan
– Notice of Claim, involves civil penalties
– Out of Service Order
17. Benefits of Good Basic Scores
• Better insurance rates
• Less likely to be inspected at a port
• Less likely to be audited
• Less likely to be placed Out-of-Service
18. Whose Actions Affect Each Category?
Driver
• Unsafe Driving
• HOS Compliance
• Driver Fitness
• Don’t do Drugs
Company
• Drug and Alcohol
• Hazardous Material
Both
• Vehicle Maint
• Crash Indicator
19. How Do Carriers Manage CSA
• HIRE GOOD DRIVERS (Use the FMCSA Pre-
Employment Screening Program)
• Put good policies and procedures in place that
encourage safe driving
• Regularly monitor SMS
– Hold drivers accountable when they have a
violation and have not followed policies
– Correct errors through the Data Q system
20. Drivers
• The FMCSA uses SMS to hold motor carriers
responsible for the job performance of those who
work for them
• Therefore, the FMCSA holds motor carriers
accountable for their drivers’ errors, such as speeding
• Carriers have tools like FMCSA’s Pre-Employment
Screening Program (PSP) to help them evaluate
potential new hires.
22. DOT Audits/Compliance Reviews
A Simple Folder System
1. Company Info, Driver
List, Equipment List
2. Insurance Documentation
3. Accident Report
4. Driver Qualification Files
5. Drug and Alcohol
6. Logbooks/Timesheets
7. Truck Documents and
Maintenance i.e.
registration, titles, etc.
8. Trailer Documents and
maintenance i.e.
registration, titles, etc.
9. Previous four quarters of
IFTA (Fuel Tax) reports
23. How Does Knowing This Help You
• Gives you a better understanding of what your
clients are going through, so you can better
relate to them
• If you can provide them assistance, even if
that is pointing them toward a resource, it
increases your credibility and improves client
loyalty
Introduce myself and give my credentials The purpose of this training session is to improve your knowledge of the industry. As account managers you are the face of TAB for your clients and to keep them around you need to provide value to them. Your industry knowledge is what can differentiate you from your competition and provide increased loyalty. This presentation will help you better understand the challenges you clients face, give you the ability to teach them a few things, provide them with further resources to overcome challenges they face and ultimately improve your credibility with you clients.Get a better idea regarding their client base, what size are most of their trucking clients? One truck, 2, 10, ect.
Anne Ferro, Director of the Federal Motor Carrier Safety Administration, thinks it is too easy to become a motor carrier. She believes there are too many bad commercial drivers on the road and she wants to get them off the road by raising the bar. I don’t think they have made it any more difficult to get into the trucking industry, they have just made it harder to stay in. There are two main ways I feel the FMCSA is pushing their Safety Initiative
Insurance agents can have a very positive impact on the safety management of a fleet through increased focus on the safety practices of the motor carrier. Often times, motor carriers, especially the smaller ones, want to do the right thing when it comes to safety, but they don’t know where to begin. The knowledge of their agent can point them in the right direction and with the knowledge and tools needed to run a safe operation. A team approach and collaboration between the agent and fleet safety manager reduces the likelihood of an accident, improves the risk exposure of the insurance carrier and increased public safety on the road. When agents take a more active role in better safety management it shows concern for the long-term success of the motor carrier and develops loyalty toward the agency. With fewer accidents and claims everyone is more profitable.
The Department of Transportation provides many of the tools needed to develop, manage and monitor a carrier’s safety practices for free and are readily available to everyone. The problem is that most motor carriers are unaware of them or have never been shown how to use them. Insurance agencies are always looking for value added services they can provide their clients to develop loyalty and get a leg up on their competition. Spending a little time training your clients on DOT Compliance, CSA Score management and DOT Audits will help them develop practices that will improve their overall fleet safety.
The DOT has put required safety measures in place for a reason, they improve safety and reduce accidents. Following the DOT’s guidelines will improve safety and keep the motor carrier out of hot water with the DOT. There are two main ways motor carriers can ensure their safety practices are in line with the DOT’s requirements. First, by monitoring their compliance via the CSA portal and making adjustments to their safety practices if their CSA BASIC scores increase above threshold levels established by the DOT. Second by preparing for a DOT Audit. The steps required to adequately prepare for a DOT Audit will also ensure motor carriers have the safety practices in place to operate safely.In2012, what was the number 1 concern for trucking companies?ATRI (American Transportation Research Institute)Survey Ranked CSA as the #1 Concern for Trucking companies, this is ahead of fuel prices, driver shortages, ect, it is a very hot topic.The FMCSA has completely changed their audit criteria and are doing focused audits, meaning they are auditing more and more carriers. The SMS (Safety Management System) scores, which are a big part of CSA is what drives who gets audited. All new trucking companies will be audited within the first 12 months of operation. They receive what is called a new entrant audit, and this is one area you can really help them out. Most companies stress out about these audits. If they are prepared, the audits are relatively simple.
The CSA program is designed to improve highway safety by holding trucking companies more accountable for their operations and safety measures. It boils down to preventing crashes.DOT Compliance matters are becoming more important than ever for trucking companies to stay on top of. Failure to properly maintain records and operations will have a great effect on a company’s insurance premiums and their ability to get loads, they can even be shut down. Shippers and brokers regularly screen the companies that haul for them and won’t do business with companies who have poor safety ratings.
The CSA initiative helps the FMCSA (Federal Motor Carrier Safety Administration) identify motor carriers with poor safety practices like inadequate vehicle maintenance, drivers who regularly violate traffic laws, and drivers who do not comply with hours of service regulations by driving or working for longer periods than allowed without adequate rest. Once such carriers are identified they get pressured through multiple channels to change their behavior and correct the deficiencies identified by CSA. If safety practices are not improved, intervention escalates up to shutting the carrier down.
Basically a three part processFirst, measuring the aspects of operating a truck that contribute to crashes and making the data quantifiable so carriers can be compared against each other.Second, is evaluating the data and comparing different carriers. The carriers whose records are worse than their peers are then singled out.Third, the FMCSA then makes contact with the carrier by several different methods depending on the severity of the case.
SMS is the meat and potatoes of CSA. http://ai.fmcsa.dot.gov/sms/ From here you can look up any active carrier’s safety data. Carriers can also log into the system with their own user name and password and see more detail about violations that have occurred.
Shows Basic, Number of times carrier has been inspected, basic carrier dataExplain where the information comes from. Roadside inspections, traffic violations, and crashes.
Seven BASIC Categories-give basic explanation of each. You don’t want to see the triangles with the exclamation point in the middle, that means you are above the threshold and on the FMCSA’s radar. If you are above the threshold in two categories for two consecutive months you will be added to the DOT’s list to be audited.Review each category, briefly discuss what companies have to do stay in compliance. Mention roadside inspections and how they impact scores. Talk about safety practices that will keep motor carriers out of trouble in each category.
The FMCSA escalates their level of intervention if things don’t get corrected, they start out small and relatively simple and get more intrusive and as time goes on.
The FMCSA uses the data from SMS, mainly the percentage in each basic to compare carriers to each other. They are devided into classes based on the number of inspections they have had and a threshold has been created for each basic category.
These are the threshold limits for each BASIC, if a company is above the threshold in any category they are on the FMCSA’s radar and are likely to experience some kind of intervention.
Briefly cover eachWill elaborate on Investigations
Carriers have to have had a minimum number of inspections in the applicable category before their percentage score will be shown.
Explain why motor carriers should maintain good safety practices.
The company really affects all of them through their SOP’s, pushing their drivers with unrealistic timelines, and by hiring drivers with a past history of problems
PSP is huge because a driver with a bad track record is only going to cause their SMS scores to increase and potentially cause additional headaches.
System companies can use to make corrects if there is erroneous data tied to their company.
Audit preparation is one of the best measuring sticks available to ensure a motor carrier’s safety practices are adequate. Going through the process will help identify holes in a safety management program and show where efforts to improve should be focused.9Folders make an audit smooth and turns 4 hours with an auditor into a visit that can list as little as 30 minutes.As of July 1, 2013, all motor carriers will be audited within the first year of being in business. This is a relatively new thing.
Completely change gears. These are more interesting facts most people don’t know about the trucking industry.
Tell them if they will email me, I will get them a copy of this presentation.