Blog - Month: July 2025
How Fleet Managers Can Combat Distracted Driving
For companies that rely on fleets of vehicles to deliver goods, transport equipment or provide services, distracted driving is a risk that can pose an existential threat to the company.
Collisions resulting from inattentive driving can lead to serious injuries, costly vehicle damage and insurance rate hikes or cancellations. Most fleets are comprised of vehicles that are significantly larger than most passenger vehicles, and when they are in accidents, they can cause significant property damage and injuries.
The scope and types of distractions
Distracted driving contributed to 3,275 deaths in 2023, according to the National Highway Traffic Safety Administration. While mobile phone use is often the most cited culprit, distractions come in many forms and are typically categorized into three types:
- Manual distractions — Activities that take a driver’s hands off the wheel, such as eating, adjusting controls or reaching for objects.
- Visual distractions — Taking one’s eyes off the road, such as checking a GPS screen or looking at a phone.
- Cognitive distractions — Anything that pulls mental focus away from driving, including fatigue, conversations or emotional stress.
Fleet drivers face unique risks as they often spend long hours on the road, operate under tight schedules and interact with in-cab technology — all of which can increase exposure to distraction.
Insurance and liability risks
A single distracted driving incident can carry far-reaching implications. For businesses with commercial auto insurance, collisions caused by distraction can result in:
- Higher premiums after claims are filed.
- Increased scrutiny or loss of coverage from insurers.
- Legal liability, including lawsuits and settlements.
- Downtime and repair costs for vehicles.
- Reputational harm, especially in service-driven industries.
Insurance carriers are particularly wary of distracted driving trends. Companies with multiple incidents may find it difficult to renew policies or face steep rate hikes. That’s why taking preventive steps is a smart way to safeguard both coverage and financial health.
What fleet managers can do
To reduce the risk of distraction-related incidents, fleet operators should implement a layered approach that combines technology, training and culture. Here are some key strategies:
Establish and enforce a distracted driving policy — Every fleet should have a clear, written policy that prohibits manual phone use and limits other in-cab distractions. This policy should outline acceptable behaviors, consequences for violations and the procedures for reporting incidents. Importantly, leadership must model this behavior and ensure the rules are consistently enforced.
Educate drivers regularly — Driver training should go beyond onboarding. Schedule mandatory safety refreshers, include real-world case studies and highlight new technology or trends contributing to distraction. Emphasize the consequences of distracted driving, both personally and professionally.
Invest in telematics and monitoring — Modern telematics systems allow fleet managers to monitor driver behavior, flagging actions such as hard braking, erratic lane changes or extended screen time. Some systems offer in-cab alerts or coaching tools to help drivers self-correct in real time.
Use hands-free tools wisely — Voice-activated controls and Bluetooth devices can reduce the need for physical interaction, but they don’t eliminate risk. Even hands-free calls can be cognitively distracting. Encourage drivers to keep communication brief and never make calls while driving unless necessary.
Schedule wisely to reduce fatigue — Driver fatigue is a major contributor to cognitive distraction. Make sure schedules allow for adequate rest, limit overtime driving and rotate assignments when possible. Encourage drivers to take breaks and report fatigue honestly.
Incentivize safe behavior — Recognize and reward drivers who demonstrate safe, distraction-free driving habits. Safety incentive programs can help reinforce good behavior and build a culture where attentiveness is the norm.
Measure success — Tracking and measuring distracted driving incidents can help refine your program. Look at metrics such as the frequency of risky events flagged by telematics, crash rates and insurance claims. Use that data to make informed adjustments, whether it’s tweaking driver schedules, updating training materials or revisiting enforcement practices.
The takeaway
By prioritizing safety through clear policies, proactive monitoring and ongoing education, companies can:
- Reduce the likelihood of costly accidents.
- Lower their commercial auto insurance premiums or preserve access to coverage.
- Protect their drivers, the public and their reputation.
Proactive fleet management can make the difference in reining in distracted driving and protecting your company’s bottom line and ongoing viability.
OSHA Updates Its Inspection Targeting Plan
The Occupational Safety and Health Administration has overhauled its Site-Specific Targeting (SST) inspection program, marking a major shift in how the agency identifies and prioritizes workplaces for inspection.
Effective May 20, 2025, the new guidance applies to non-construction employers with 20 or more employees and significantly increases OSHA’s reliance on employer-reported injury and illness data submitted every year on Form 300A.
For business owners, especially those in high-risk industries like warehousing, transportation, distribution and health care, this shift brings the potential for more frequent and comprehensive inspections, even if their workplaces appear to be in compliance on the surface.
A deeper dive into OSHA’s new approach
Under the updated SST plan, OSHA will use Form 300A data from calendar years 2021 through 2023 to generate inspection lists. Employers may be selected for inspection based on:
- High DART (days away, restricted or transferred) rates in 2023
- Upward-trending DART rates over the three-year period
- Unusually low DART rates compared with industry averages (to verify data accuracy)
- Failure to submit Form 300A
The DART rate, which reflects the number and severity of injuries or illnesses affecting an employee’s ability to work, will play a central role in OSHA’s targeting decisions. Even employers who have submitted their data correctly and on time may find themselves flagged for inspection if their DART rates stand out, either for being too high or suspiciously low.
Compliance officers are instructed to assess hazards across the entire workplace, not just to focus on areas where injuries have occurred. This means that while an inspection may be triggered by injury rates in one part of your operation, inspectors are free to examine other areas and issue citations for unrelated violations they encounter.
What’s changed — and what hasn’t
The new guidance eliminates the previous requirement that OSHA conduct a partial inspection even if an establishment was mistakenly included on the inspection list.
At the same time, inspectors are now encouraged to conduct thorough walkthroughs of workplaces, potentially over multiple shifts, to evaluate exposure risks and overall safety conditions.
What hasn’t changed is the program’s reach: the SST still excludes construction, agriculture and maritime sectors but applies to all other industries. OSHA also continues to divide establishments into manufacturing and non-manufacturing categories, applying different thresholds for DART rate comparisons.
What employers should do now
Business owners should treat these changes as a call to action. Being proactive is key to avoiding costly inspections and penalties.
Here are some practical steps employers can take:
- Audit your OSHA 300 and 300A records: Ensure that only recordable incidents are reported. Avoid over-reporting non-recordable events that can inflate your DART rate and draw OSHA’s attention.
- Prepare for inspections: Designate a trained point person who will handle OSHA visits and make sure that any inspection stays within its legal scope.
- Know your rights: You are not obligated to allow an inspector on site without a warrant. Employers may ask OSHA to verify whether they are on the SST list before proceeding.
- Limit the first-day disclosure: Do not voluntarily turn over documents beyond your OSHA 300 logs, 300A summaries, 301 forms and relevant Safety Data Sheets on the first day of inspection.
- Stay inspection-ready: Conduct internal walkthroughs using the same criteria OSHA uses — especially focusing on high-hazard areas, employee exposures and recent injuries.
- Train employees: Educate your team, particularly non-supervisory staff, on what to expect during an OSHA visit and how to respond appropriately to inspector questions.
Review Your Property Coverage Limits as Construction Inflation Continues Apace
Rapidly rising commercial building construction costs could result in your facility being underinsured if you suffer a major loss and haven’t increased your insurance policy replacement cost limits lately.
Your policy has a maximum amount it will pay to rebuild your building, and that limit should reflect current construction costs. Otherwise, the policy may not be enough to pay for rebuilding after a total loss like a fire razing your business. And whatever the insurance doesn’t cover, you would have to pay out of pocket.
Construction costs
According to a report by Verisk, reconstruction costs in the U.S. increased by 5.2% from April 2024 to April 2025.
Those rising costs come on the heels of massive material price increases of 40% from 2020 to 2023 when supply chains were snarled.
Some prices have come down a little, but they are still mostly higher than before the pandemic.
With tariffs coming on many goods used in construction, we could be in for another round of construction cost increases.
Also, the construction industry faces a labor shortage, which has added to the cost of rebuilding and the time it takes to complete a project.
Escalating construction costs can extend rebuilding and repair timelines for properties.
Longer waits for materials or workforce can also increase compensation periods and can be a serious burden for a business that has lost access to its facility.
Many policies will also cover business interruption costs, which can be exacerbated by increased downtime at the damaged or destroyed facility.
Revisit your replacement cost
One of the critical parts of the claims settlement process is determining the cost to reconstruct a building to its original state with new materials and current labor rates. When these costs rise, so should your policy limits.
For example, a property owner bought insurance five years prior with a coverage cap of $1.5 million.
With escalating material and labor expenses, the present reconstruction price has soared to $1.8 million. Should a total loss occur, the insurance compensation would fall $300,000 short, forcing the occupier to pay the rest out of pocket.
What you can do
Proactive management of your insurance coverage ensures you have the necessary resources to recover from unforeseen events.
Review your policy — Work with us to conduct an annual policy check to ensure that your coverage matches current reconstruction expenses, averting monetary shortfalls.
Opt for a replacement cost policy — Choose a replacement cost value policy over actual cash value policy. The former offers better financial security. Actual cash value policies discount depreciation, usually covering less than the actual construction cost. Replacement cost value policies, despite being slightly costlier, guarantee reconstruction with contemporary materials at prevailing market rates, lessening personal expenses.
Expand your coverage — Ask us about expanded coverage options like:
- Extended replacement value coverage, which boosts dwelling limits if costs exceed standard coverage.
- Loss of use insurance, which aids in financing temporary housing if the property becomes uninhabitable.
- Ordinance or law insurance, which covers expenses for conforming to current building codes.
How to Prepare for Blackouts During Wildfire Season
During wildfire season, utilities with equipment in at-risk areas will often cut power during high-wind events to reduce the risk of ignition from downed power lines.
While the practice can prevent a fire from starting, it can put businesses in a bind by hampering operations and even putting perishable items at risk of spoiling if the outage lasts for an extended period.
With the specter of multiple-day power outages always looming during wildfire season, businesses need to be prepared to keep their operations going and prevent losses that may not be covered by insurance.
Fortunately, businesses can take steps to ensure resilience and the ability to function during power outages, especially if they last a few days. The following is good advice for any business since blackouts can also occur during heavy storms and natural catastrophes which can hit anywhere.
Identify business processes that would be most affected
These processes will differ from business to business, but once you put them all down on paper, it will be easier to plan how to keep those functions going.
Create a continuity plan
Once you’ve identified your key processes, brainstorm how you can keep them going without your typically reliable power supply.
Write up an emergency response plan and share it with employees so they know what to do in a power outage and the steps to take to protect equipment. Employees should also know where to exit the building if they need to evacuate.
As part of your plan, build an emergency kit and include first aid supplies, flashlights, batteries, water, nonperishable food, safety gloves, a battery-powered radio and anything else your business might need.
Set up a backup power system
Consider investing in a backup generator that is right for your business needs. With a generator, you can continue to run critical aspects of a small business during a power outage. This is especially important if you have perishable inventory, like a restaurant, food distributor or grocery store, to avoid spoilage.
Make sure to keep backup generators and fuel in a safe location. Generators need to be used with adequate ventilation to avoid the risk of carbon monoxide poisoning. Never use a generator under wet conditions and always let them cool off before refueling.
Cloud storage and Wi-Fi
If you have not done so, you should secure a means of paperless document and file storage in the cloud. If there is a power outage and an accompanying surge, you could quickly lose your data.
You should also prepare a system of battery-powered mobile wireless hotspots that connect via cell towers, so that even when the internet goes down, you can finish important tasks requiring web access, such as setting up an e-mail auto-response.
Protect your electronic equipment
Equipment that contains sensitive components and plugs into a wall outlet, like a computer, could benefit from a surge protector, which protect them from the powerful rush of electricity when the power comes back on.
Buy an uninterruptible power supply unit
This is essentially a portable battery with power outlets, allowing you to plug in electronics and continue using them during an outage. They come in numerous sizes, and the more they cost, the more power they can store and deliver.
Some of these units can supply power to a small building, and you may be able to purchase a solar panel that can recharge the unit.
Invest in the right insurance
If you’ve got business interruption insurance, you may be covered for losses related to the outage, but it all depends on the specific wording in your policy. The cause of the outage might matter, and your coverage might only kick in if the outage lasts for a certain duration.
However, if the loss is the result of a power outage due to the public utility, you may not be able to get compensated for these losses by a business interruption policy. Also, while most commercial property policies include business interruption coverage, it only kicks in in the case of physical damage to the property.
That said, some policies cover power outages by default. If you are in a state that is susceptible to wildfires and there is a possibility of blackouts by your public utility, give us a call to discuss your current coverage.
Supply-Chain Volatility Threatens Businesses
As the Trump administration returns to aggressive tariff strategies, business owners across the country are once again bracing for impact. On-again, off-again tariffs aimed at key trade partners like China, Mexico and Canada are creating a volatile environment where forecasting costs, securing materials and delivering products on time are increasingly difficult.
The unpredictability of these policies is creating ripple effects through global supply chains, threatening many businesses’ margins, operational stability and customer relationships.
Recent data show that U.S. companies have already lost more than $34 billion due to tariffs, whether from direct duties, lost sales or increased costs. Even businesses that don’t import directly from affected countries may face indirect impacts if their suppliers do.
A survey by Arthur J. Gallagher & Co. found that 90% of business owners are concerned about the effect tariffs are having on their operations — particularly in the form of:
- Supply chain disruptions due to changing routes and sourcing complications,
- Surging input costs that are difficult to pass on to customers,
- Manufacturing slowdowns driven by raw material delays or pricing volatility,
- Inventory hoarding to front-run new tariffs, which ties up working capital, and
- Dampened investment as companies adopt a wait-and-see approach.
What businesses can do
Large multinational corporations may have the resources to weather tariff swings — rerouting orders, renegotiating contracts and leveraging deep supplier networks. But for smaller businesses, limited buying power, narrower margins and lean supply chains mean there’s far less wiggle room.
Owners in industries like electronics, automotive parts, construction materials and apparel are especially exposed. Many of these businesses rely on components or raw materials from Asia, where even slight delays or cost increases can disrupt production and reduce profitability.
Despite the uncertainty, business owners can take proactive steps to reduce their exposure to tariff shocks and improve supply chain resilience:
- Audit your supply chain — Identify all products and components exposed to tariffs (directly or through suppliers) and calculate the potential financial impact.
- Diversify sourcing — Spread risk across multiple suppliers and consider partners in countries not subject to tariffs or have lower tariffs than those imposed on Chinese goods. Where possible, increase domestic sourcing to reduce exposure to geopolitical disruptions.
- Negotiate flexibly — Work with suppliers to explore cost-sharing options, volume-based discounts or adjusted contract terms to accommodate sudden tariff hikes.
- Use technology — Invest in supply chain and inventory management tools that help you track lead times, monitor pricing trends and adjust sourcing strategies in real time.
- Stay informed — Tariff regulations often appear in the Federal Register or through U.S. Customs announcements. Stay on top of updates and take part in comment periods to voice concerns before rules are finalized.
- Have a response plan — Meet with legal or financial advisors to build a tariff mitigation plan. This might include adjusting pricing models, altering stock keeping units or building a reserve of critical inventory.
Supply chain insurance
Many business owners wonder if supply chain disruption insurance could cover losses tied to tariffs. The answer is nuanced.
Standard supply chain policies typically cover physical interruptions — like natural disasters, factory fires or transportation breakdowns — that prevent a supplier from delivering goods. However, they usually do not cover economic disruptions, such as those caused by tariffs, trade sanctions or changes in government policy.
That said, some insurers are developing specialty coverage or endorsements that address trade disruption or political risk. These emerging trade disruption insurance policies may offer protection against losses stemming from sudden changes in tariff regimes or government-imposed import restrictions, even in the absence of physical loss or damage to the policyholder’s goods or assets.
However, these policies tend to be more common in large-scale international trade and are priced accordingly.