COMMERCIAL PROPERTY & CASUALTY
Is Your Program Evolving with the Industry?
When 'Nice-to-Haves' Become 'Have-to-Haves' in Your Insurance Program
Today’s fast-evolving employment landscape means that processes and policies once considered beneficial extras are now fast becoming requirements. With many insurance carriers implementing stricter coverage guidelines, it is more important than ever for companies to adapt and ensure their internal processes are robust and up-to-date.
Below, I’ll walk through three areas employers should focus on to protect their teams and organizations.
Address Discrimination & Harassment in Your Employee Handbook
In 2023, the U.S. Equal Employment Opportunity Commission received 81,055 new charges of discrimination, representing more than a 10% increase from 2022. This rise in cases means companies of all sizes need to button up their internal processes and procedures to keep pace with the evolution of the employment environment.
Every company needs to include a clear and comprehensive handbook section on discrimination and harassment to ensure a fair and safe workplace.
Key Aspects Include
- Clear Policies Explicit policies that define what constitutes discrimination and harassment.
- Handling Procedures Detailed procedures for reporting and handling incidents, ensuring that all cases are treated consistently and seriously.
- Regular Training Ongoing training for all employees to recognize and prevent discrimination and harassment.
Consistent enforcement of these policies is crucial. Insurance carriers are asking for detailed proof that these policies are not just written but also implemented.
"The shift from optional to essential in these practices highlights the increasing emphasis on safety, efficiency, and liability management within fleet operations."
Michael Kline
Detailed Job Descriptions for Every Role
Accurate and detailed job descriptions are fundamental to effective employee management. Clearly delineating roles and responsibilities prevents confusion and ensures that employees stay within their defined roles, which is especially important if there is a safety aspect to the job.
Important Considerations Include
- Role Clarity Clearly defined roles prevent employees from overstepping boundaries, which can lead to inefficiencies and increased liability.
- Proper Classification Ensuring employees are classified correctly – especially concerning insurance class codes – can prevent unexpected increases in insurance premiums and other compliance issues.
- Safety and Training Detailed job descriptions also help identify the specific training required for each role, promoting a safer work environment.
Inaccurate job descriptions can lead to role ambiguity. That on-the-job uncertainty could result in employees taking on tasks they aren’t trained for, which increases the risk of accidents and non-compliance.
Maintaining Detailed Records for Your Auto Fleet
Not every company has an auto fleet, but records maintenance is extremely important for those that do. According to research from the Insurance Information Institute and Casualty Actuarial Society, claim payouts for commercial auto insurance liability increased by $20 billion between 2010 and 2019. If fleet safety programs aren’t properly managed, the potential for financial and legal repercussions is significant.
A Well-Rounded Fleet Safety Program Now Includes Several Crucial Elements
- Servicing and Training Regular maintenance and thorough training for drivers ensure the vehicles' longevity and the personnel's safety.
- Monitoring of Motor Vehicle Records (MVR) Keeping a close watch on drivers' MVRs helps identify risky behaviors and prevent accidents.
- Accident Investigation Prompt and detailed investigation of accidents helps to identify the cause and prevent future incidents.
- In-Car Cameras Installing cameras in vehicles serves multiple purposes—it provides real-time monitoring, aids in driver training, and is invaluable in accident investigations.
The shift from optional to essential in these practices highlights the increasing emphasis on safety, efficiency, and liability management within fleet operations.
Work with a Proactive Broker Partner
As the industry undergoes continuous change, so must your company’s policies and procedures. Staying proactive and embracing new standards will help your company navigate the dynamic business landscape with confidence and resilience.
If you have questions about your program, get in touch with me at Michael.Kline@thinkccig.com. I’m here to help strengthen your insurance and risk management strategy with a tailored, forward-thinking approach.