Why Contractors Need a Driver Safety Program Now More Than Ever

The other day, I spoke with a business owner about his commercial auto policy and his driver safety program. When I asked if he had one in place, he explained that he checks every driver’s motor vehicle record before hiring them but plans to implement a safety program "down the road." I advised him to prioritize this now, as waiting could lead to insurance costs spiraling out of control—potentially increasing by 50% compared to his competitor's policy. Insurance carriers are losing a lot of money on auto claims, which in turn means rates are rising, and in some situations, it's even hard to find a carrier that will insure you.

Every contractor faces daily challenges, from managing projects and budgets to ensuring employee safety. However, one aspect often overlooked is road safety. With the rise in vehicle-related accidents and growing focus on workplace safety, implementing a robust driver safety program has shifted from being a "nice-to-have" to an absolute necessity. Most insurance carriers now require it to be established before they will provide coverage for your business's auto policy.

Beyond meeting insurance requirements, a strong safety program delivers significant benefits. It can lead to long-term savings on insurance premiums, protect your business from costly lawsuits, and encourage the development of a safety-focused culture within your team.. When combined with advanced tools like telematics, it doesn’t just improve safety—it can optimize your operations and drive meaningful change. Prioritizing road safety today is an investment in your business’s future success.

The Case for Safety on the Road

Recent trends reveal an alarming rise in work-related accidents, many of which involve fleet vehicles. Here's why this issue matters to contractors:

• The Costs Are Skyrocketing: Accidents are more than just inconveniences. They lead to expensive claims, employee injuries, higher insurance premiums, and in some cases, lawsuits that can cripple a business.

• Insurance Savings Are Within Reach: Prioritizing driver safety can significantly cut your commercial auto insurance premiums. Many insurers offer discounts for organizations that demonstrate a commitment to proactive risk management.

• Telematics = Prevention & Performance: Telematics is revolutionizing risk management by providing more than just vehicle monitoring—it delivers critical insights into driver behavior, helping to prevent accidents before they occur. Some insurance providers I represent offer free telematics systems, which makes this technology more accessible. Beyond safety, telematics also streamlines route planning, enabling businesses to cut costs and boost efficiency.

Implementing a Successful Driver Safety Program

Setting up a driver safety program may feel daunting, but with the right tools and framework in place, it can be straightforward. Here are the key steps to get started:

1. Establish a Clear Policy

Your program begins with setting expectations. Clearly define safe driving practices and ensure that all employees operating vehicles—whether company-owned or personal—adhere to them. Cover essentials like:

• Compliance with all traffic laws

• Avoidance of distractions (e.g., cell phones)

• Reporting accidents immediately

[Pro Tip:] Save time and ensure full insurance compliance by using my safe driving policy template. (Send me an email at Bret@insuranceproaz.com, and we can schedule a time to talk over the phone. I’ll also be happy to forward you the template)

2. Conduct Regular Training

Training is key to instilling a sense of road safety across your organization. Schedule driver education sessions covering defensive driving techniques, vehicle maintenance, and how to handle emergencies.

3. Use Telematics to Monitor and Improve Behavior

Telematics systems are no longer optional—they’re a game changer for contractors. These tools monitor speeding, harsh braking, and other risky behaviors. With this data, you can coach drivers and reduce accident risks while qualifying for discounts on insurance premiums.

4. Verify Driving Records with MVR Checks

A Motor Vehicle Record (MVR) check ensures you’re onboarding employees who meet your safety standards. Employees with a history of reckless driving or DUIs present unnecessary risks to your fleet and business. [We provide an MVR release consent form template to our insureds.]

5. Incentivize Safe Driving

Reward employees who demonstrate consistent, safe driving habits. This could range from recognition in team meetings to small bonuses or gift cards. Rewards always help to motivate safe driving.

6. Regularly Review and Update Your Program

Safety programs aren’t “set it and forget it.” Review your policies periodically, incorporate new technologies like AI-backed telematics, and stay updated on industry best practices to improve effectiveness.

The Telematics Advantage

It’s impossible to discuss driver safety without addressing the role of telematics. Once seen as an expensive luxury, telematics is now an essential tool for contractors. Its benefits include:

• Real-time Monitoring: Gain immediate insights into driver behavior, such as speeding or idling.

• Risk Reduction: Use data to proactively mitigate risks and prevent accidents.

• Insurance Savings: Many insurers offer better rates for fleets equipped with telematics systems.

Protect Your Business AND Your Bottom Line

Beyond improving safety, setting up a driver safety program is a strategic business decision. Here’s why:

• Avoid Costly Claims & Lawsuits

Accidents come with enormous financial liabilities. From repairing vehicles to medical expenses and legal fees, a single claim can wreak havoc on your finances.

• Lower Insurance Rates

Insurers look for proactive risk management. Implementing a program and leveraging telematics showcases your commitment to safety, making you eligible for policy discounts.

• Stay Ahead of Regulations

With regulations tightening in many industries, having a strong safety foundation ensures compliance with laws while safeguarding your reputation.

Take the Next Step Toward a Safer Future

Taking action today can save you from headaches tomorrow. We understand setting up a driver safety program might feel overwhelming—that’s why we’ve made it easier for you.

Get started with your FREE template:

• Driver Safety Policy Template

• Motor Vehicle Authorization Form for Onboarding

👉 email me at Bret@bgagencyins.com.

You can also book a call with me today, just click the link below!