Whether you own one vehicle or a whole fleet, your business needs commercial auto insurance to mitigate risk and protect your assets. Even one accident can cause devastating losses if you don't have adequate coverage.
FCCI will help make sure you're protected through our comprehensive coverage that can be designated for vehicles owned, rented, leased, hired and borrowed. FCCI's risk control consultants specialize in the auto-related challenges businesses face. Whether you need help developing a fleet safety program, evaluating a telematics solution, or training your drivers, we will work with you to help keep your drivers safe and minimize risk exposures.
We'll happily tailor a policy that meets your needs, and we'll help you develop a safe driving program to minimize risks on the road.
Ask your agent about the right FCCI policy to protect your business.
First Choice Auto Endorsement
The First Choice Auto Endorsement is an optional package of additional coverages and enhancements that include:
Additional insured when required in a written contract
Employees as insured
Loan/Lease gap coverage
Loss caused by fire or lightning
Increased transportation and loss of use expenses
Waiver of subrogation when required in a written contract
Auto coverage that brings peace of mind
Our strong partnerships have you covered
In August 2016, Louisiana was hit with flooding that damaged many homes and businesses and left motorists stranded on the interstate for days. In Baton Rouge, the corporate office of B&D Group, a family-run electric, plumbing, heating and air conditioning company, was flooded with 36 inches of water. The building suffered major damage, and they completely lost the use of their fleet of vehicles ...
B&D Electric President Robert Pendarvis and agent Cooper Hurst
Safe Drivers Lower Risk
Driver Awareness Training
Automobile crash severity is on the rise across the nation. Businesses need resources to help everyone stay safe on the road and lower insurance premiums. We're here to help. Over 2,500 of our policyholders' employees have completed FCCI's Driver Awareness Training in 2018 alone. Educating your drivers on the importance of staying focused and avoiding bad habits is vital to mitigating risk, protecting your assets, and keeping your employees safe.
As part of our Commercial Auto Risk Control Program, one of our risk control consultants will work closely with you to review your current program and make recommendations to lower your risks. We'll cover new employee training, driver safety and discipline, accident reporting and more. Our risk consultant will also review challenges unique to your business to help you develop an auto risk control program that benefits everyone.
Six factors driving commercial auto insurance costs
1. Distracted Driving Concerns While many factors can lead to a crash (e.g., impaired driving, poor road conditions and adverse weather), distracted driving is one of the most common causes of accidents. As these incidents have become more common, insurance rates have climbed in tandem, creating a risk management challenge for insureds and a profitability challenge for insurance carriers that sell commercial auto insurance.
2. Ongoing Commercial Driver Shortage| Approximately 160,000 commercial driver positions will go unfilled in the next decade. This ongoing shortage has placed a substantial burden on businesses, often forcing them to hire less experienced drivers. In general, less experienced drivers are more likely to be involved in accidents and tend to be costlier to insure. With no end in sight to the driver shortage, businesses will need to train drivers effectively and ensure their company makes road safety a priority.
3. Increasing Vehicle Repair Costs Technological advancements have made vehicles safer and more efficient. However, as commercial vehicles are outfitted with a variety of sophisticated components (e.g., backup and blind-spot cameras), they are becoming increasingly expensive to repair. What’s more, ongoing supply chain issues coupled with an increased demand for certain components (e.g., computer chips) has led to inflated car part prices. Auto repair shops also have to contend with labor shortages for skilled positions. These labor shortages are increasing labor costs for vehicle repairs, as repair ships are having to offer employees higher wages.
4. Rising Social Inflation According to the National Association of Insurance Commissioners, social inflation describes how insurers’ claims costs are increasing above general economic inflation. This is generally thought to be due to increasing litigation costs brought about by plaintiffs seeking large monetary relief for their injuries. Social inflation has affected many lines of commercial coverage in recent years, but the auto insurance market has been particularly impacted. In total, the Insurance Information Institute found that social inflation has led to a $30 billion surge in commercial auto claim costs since 2012.
5. Nuclear Verdicts Nuclear verdicts refer to exceptionally high jury awards—generally, those exceeding $10 million. Such verdicts have become increasingly common in the past decade. The American Transportation Institute reported that trucking verdicts have increased by more than 50% each year for the past decade. Furthermore, the number of nuclear verdicts has nearly doubled during this time frame. Increasingly, insurers are having to factor in nuclear verdicts when they price commercial auto insurance policies.
6. Elevated Medical Costs Medical costs have been rising steadily over the past decade. In fact, losses for bodily injury claims have increased by 10% over a five-year period alone. These increased costs have affected multiple lines of insurance, including commercial auto insurance. Following an accident, injuries for all those involved can vary in severity. It’s not uncommon for the injuries of those involved in an accident to require multiple doctor visits or even surgery, which can extend recovery time and influence the cost of claims. These rising costs are accounted for in the price of commercial auto insurance.
We are here to provide much-needed market expertise. Contact us today for additional risk management guidance and auto insurance solutions.