Motor Fleet Risk Management

Managing a motor fleet is exhausting work. Whether your clients business’ fleet consists of five or 500 vehicles, gathering them all together and managing their collective risk can feel like an endless exercise in futility. While addressing one specific risk, three more different risks can pop up, all demanding your immediate attention.

Instead of addressing risks as they develop and perpetually playing catch up, invest in motor fleet risk management strategies that thwart problems before they appear.

Managing Risk

Risk management is a pre-emptive, habitual strategy aimed at analysing risks and implementing processes to reduce or eliminate them. A concerted risk management effort comes with many benefits—it can lower your premiums, reduce business disruption, protect employees and much more.

Although the process will vary slightly according to your clients needs, the five basic steps for analysing their business’ risks, listed below, should be the bedrock of any organisation’s risk management programme:

  1. Identify the hazards.
  2. Determine who might be harmed and how.
  3. Evaluate the risks and decide on precautions.
  4. Record your findings and implement a plan of action.
  5. Monitor and review the plan.

Following these steps can help to isolate and eliminate your clients biggest risks.

Pricing Motor Fleet Policies

If you purchase a motor fleet insurance policy for your clients business, be aware that their premiums will be highly dependent on their business’ past claims experience. But an unfavourable claims history does not necessarily preclude a favourable and affordable motor fleet insurance policy—good risk management can translate to vastly improved policy terms.

Analysing Claims and Accidents

As part of an effective motor fleet risk management strategy, investigating your clients business’ past accidents can slash claims costs. Start by analysing the conditions that led to your clients business’ past accidents and any preventive measures taken to reduce them. Did they work? If not, consider new accident-reduction programmes.

Rely on the insurer to supply the past accident data that will serve as the foundation of their analysis. A typical claims and accident analysis should include the following information:

  • Accident circumstances such as day, date, time and location
  • Vehicle(s) involved
  • Driver(s) involved
  • Claim types
  • Cost analysis

Surveying Their Fleet

Some motor fleet insurers employ specialist fleet surveyors tasked with performing a more in-depth analysis that identifies significant problem areas and provides recommendations.

Insurers will sometimes provide surveys for free under the condition that the insured complies with the survey’s findings. Any resources the insurer expends on free surveys are expected to be recouped via the insured’s survey-compliant improvements and subsequent reduction in claim costs.

Because fleet surveys are more extensive and detailed, business owner and manager investment is central to success. Unless owners and managers are ready to support improvement initiatives spurred by the survey’s findings, the fleet survey will probably not achieve all of its objectives and will likely leave some risks unexamined.

Controlling Your Risks

Use the results from your internal analysis or external fleet survey to streamline processes and promote a positive health and safety culture. Apply the recommendations to your business’ management controls such as managerial structure, general processes and drivers’ handbook. Typical management controls which dictate how their fleet runs include the following:

  • Working hours policy: Consider the maximum number of driving hours, breaks and times of the day when driving should take place.
  • Working conditions: Interview drivers to figure out what practices need changing.
  • Route and workload planning: Study whether there are more efficient ways to allocate assignments and chart routes.
  • Mobile telephone policy: Enforce a mobile policy that complies with the law and stresses driver safety.
  • Safety equipment: Establish clear rules for using safety equipment such as seat belts, first-aid kits and fire extinguishers.
  • Vehicle controls: Adopt a ‘clean car’ policy which prohibits leaving any valuables in view and dictates that drivers can only park in secure places.
  • Responsibility for vehicles: Assign specific vehicles to drivers who are responsible for their condition.
  • ‘How’s my driving?’ schemes: Some businesses include stickers on their vehicles encouraging members of the public to call in with complaints or compliments, encouraging drivers to drive more carefully.

Reining in Risk

Reining in your clients business’ motor fleet and driver risks can feel like trying to hold water in the palm of your hand—no matter what you do, some risks slip through the cracks. Trust the insurance professionals at Direct Insurance London Market to help you create an effective motor fleet risk management strategy and find you the perfect insurance policy that comprehensively covers all your clients needs. Call us at (0) 20 3818 8060 to start bolstering your business today or visit www.dilm.co.uk to leanr more..

Cyber Liability Insurance – Are your clients fully protected?

As technology becomes increasingly important for successful business operations, the value of a strong Cyber Liability Insurance policy will only continue to grow. The continued rise in the amount of information stored and transferred electronically has resulted in a remarkable increase in the potential exposures facing businesses. Regulations, such as the Data Protection Act must also be considered, because a loss of sensitive personal information may subject you to fines and sanctions from the Information Commissioner. In an age where a stolen laptop or hacked account can instantly compromise the personal data of thousands of customers or an ill-advised post on a social media site can be read by hundreds in a matter of minutes, protecting yourself from cyber liabilities is just as important as some of the more traditional exposures businesses account for in their general commercial liability policies.

Why Cyber Liability Insurance?
A traditional commercial insurance policy is extremely unlikely to protect against most cyber exposures. Standard commercial policies are written to insure against injury or physical loss and will do little, if anything, to shield you from electronic damages and the associated costs they may incur. Exposures are vast, ranging from the content you put on your website to stored customer data. Awareness of the potential cyber exposures your company faces is essential to managing risk through proper cover.
Possible exposures covered by a typical cyber policy may include:

Data breaches – Increased online consumer spending has placed more responsibility on companies to protect clients’ personal information.
Business/Network Interruption – If your primary business operations require the use of computer systems, a disaster that cripples your ability to transmit data could cause you or a third party that depends on your services, to lose potential revenue. From a server failure to a data breach, such an incident can affect your day to day operations. Time and resources that normally would have gone elsewhere will need to be directed towards the problem which could result in further losses. This is especially important as denial of service attacks by hackers have been on the rise. Such attacks block access to certain websites by either rerouting traffic to a different site or overloading an organisations server.
Intellectual property rights – Your company’s online presence, whether it be through a corporate website, blogs or social media, opens you up to some of the same exposures faced by publishers. This can include libel, copyright or trademark infringement and defamation, among other things.
Damages to a third-party system – If an email sent from your server has a virus that crashes the system of a customer or the software your company distributes fails, resulting in a loss for a third party, you could be held liable for the damages.
System Failure – A natural disaster, malicious activity or fire could all cause physical damages that could result in data or code loss.
Cyber Extortion – Hackers can hijack websites, networks and stored data, denying access to you or your customers. They often demand money to restore your systems to working order. This can cause a temporary loss of revenue plus generate costs associated with paying the hacker’s demands or rebuilding if damage is done.

Cyber Liability Insurance is specifically designed to address the risks that come with using modern technology; risks that other types of business liability cover simply won’t. The level of cover your business needs is based on your individual operations and can vary depending on your range of exposure. It is extremely important to work with a broker that can identify your areas of risk so a policy can be tailored to fit your unique situation.

Direct Insurance London Market Your Cover Expert
As reliance on technology continues to increase, new exposures continue to emerge. As your clients business grows, make sure their cyber liability cover grows with it. Direct Insurance London Market is here to help you analyse their needs and make the right cover decisions to protect their operations from unnecessary risk. Contact us today at (0) 20 3818 8060.

 

 

Schemes director exits Gallagher to join ambitious MGA

Former Gallagher hospitality and leisure schemes director Ollie Barrett has joined Imperium Insurance Management.

As well as schemes director Barrett, Imperium has also recruited Julian Beard, previously Higo Underwriting’s director of sports clubs and leisure specialism under the Clubsure brand.

The duo aim to boost Imperium’s growth in sports and leisure which has a popular quote and buy platform with brokers.

Imperium managing director Tony Lawrence said: “The recruitment of Ollie and Julian serves further to demonstrate our strategy of launching niche products that are deliverable via our state of the art e-platform, underpinned by the knowledge of known and respected specialist underwriters in their field.”

Imperium has launched more than 10 products in the UK and Ireland in the last 18 months. These include unoccupied property, farm combined, farm motor, terrorism and tradesman.

Imperium Insurance Management is the specialist MGA division of Direct Insurance Group, a Lloyd’s broker and wholesaler.

It has been a busy year for Imperium, having launched an online agricultural fleet product. Imperium has vowed to give brokers ‘unparalleled service’ on the product under its iFarm brand.

Imperium also recruited ex-Towergate and Rural agricultural specialist James Leathley as underwriting director for iFarm, who started his role at the beginning of the year.

Imperium is backed by capacity from XL, and in May 2015, Insurance Times reported its long-term GWP targets.

Direct Insurance Group has itself been producing a number of innovative new products for brokers, including an online terrorism solution.

To learn more about iSure’s Sports & Leisure Select insurance offer click here