More Best Insurance Practices for Better Premiums












More Best Insurance Practices in Our continuing Series

2021 Insurance Saving Tip #30

Use qualified third parties for your required annual equipment inspections

Both OSHA (heavy lifting equipment) and the U.S. DOT (on-road vehicles) have specific regulatory requirements for their respective annual equipment inspections.

In some smaller operations, owners sometimes “self-certify” their annual inspections, primarily as a cost savings. If they are qualified inspectors, this is their option.

Consequently, however, some of these required inspections are not always done on a timely basis, or even done at all.

Why use third-party inspectors (TPIs)?

Some advantages of TPIs include:

  • Better documentation of the inspection
  • Enforcement of required repairs and faults that might be deferred
  • Better regulatory compliance
  • “Another set of eyeballs”
  • Completion on a timely basis
  • No question of the quality of the inspection

Utilizing third-party inspectors for annual inspections, I believe, is an investment that can help lower insurance premiums and avoid further correspondence from insurance underwriters.

2021 Insurance Saving Tip #31

Set up an Inspection Safety Lane

An inspection safety lane can be set up to inspect any rolling stock as it is leaving or returning to your yard.

An inspection safety lane can be used for a quick walk-around, checking tires, lights, and overall condition, or go more in depth, as in a complete pre-trip inspection.

Bonus Tip:

Sometimes an injured employee needs to return to work doing some light-duty tasks.

Helping an injured employee off of workers’ compensation by performing the role of Safety Lane Inspector can be mutually beneficial for all parties, directly affecting insurance premiums.

2021 Insurance Saving Tip #32

Adopt the ‘Inspect to Fail’ Inspection Standard

Some of the most frequent questions asked by drivers include:

  • When does the condition of the vehicle (or load) merit not driving any further due to major or serious faults?
  • When may a vehicle be driven to a repair facility?
  • When is a vehicle roadworthy even though it may harbor minor faults?

Crane operators can have the same questions in their operations.

Solution: Adopt the ‘Inspect to Fail’ Inspection Standard

‘Inspect to fail’ is a best practice, based on the concept that most, if not all, equipment failures and equipment-related safety issues are preventable with frequent thorough inspections and superior preventative maintenance.

‘Inspect to fail’ means, if a part, component or system on a vehicle (or the load or driver) does not meet, or fails to meet any standard of safety, the fault will be corrected before operations commence.

The equipment is, literally, ‘inspected to fail.’

Drivers/operators are held accountable for catching and acting on *all equipment and safety defects.

*Note: Corrective action will depend on the severity of the fault(s), but safety is always non-negotiable.

2021 Insurance Saving Tip #33

Document all inspections

Drivers, crane, hoisting, forklift, and other equipment operators need to complete equipment inspections before use, under both OSHA and DOT Regulations.

These dally inspections should be documented either in writing or electronically.

Why document inspections?

  • It’s required by state and federal law, with few exceptions.
  • “If it’s not in writing, it’s not been done.”
  • It’s a proven best practice

Professional Level:

  • Train your drivers and operators to always note one or two things in the REMARKS section, that they did during the inspection (check oil, tire pressure, etc.)


And always be sure to “Inspect before you check” the form.

2021 Insurance Saving Tip #34

Teach your drivers the Smith System® of Collision Avoidance

What’s the insurance issue?

  • Analytical data insights from firms as Omnitracs suggest some drivers could have taken evasive action to have avoided a major to severe collision but did not.

An Omnitracs’ Accident Severity Model data analysis (2015) has found in some of the most severe collisions* that drivers:

  • Took zero evasive action
  • Could have seen the point of impact 6-7 seconds prior to impact (if awake), and
  • Made no attempt to minimize damage at the point of impact (braked or steered away).

(*Roll-Over, Run-off Road, Head-on, Jack-knife, Side-swipe, Rear-end)

What can be done?

Use The Smith System® of collision avoidance. The idea for Harold L. Smith’s copyrighted system for safe driving came to him in the Navy during WWII.

Smith read a notice on a board in Guam pointing out how many servicemen were dying in car collisions. After the war, Smith researched vehicle collisions and concluded the majority of collisions were caused by “a lack of vision.”

  • The foundation of The Smith System® are The Smith5Keys®
  • The key to safe driving is in managing time and space. More space gives you more time, and more time gives you more space, and more options. This is a fundamental rule of safe driving, no matter your age or level of experience.

The Smith5Keys ®  are designed to provide drivers with the knowledge and skills to create three important things while driving:

  • Space to maneuver their vehicle away from conflict
  • Visibility to detect danger and the potential for conflict with another vehicle or fixed object early
  • Time to react to volatile and complex driving environments”

What are Smith Systems’ ® five keys ?

  • Key 1. Aim High In Steering®
  • As pilots are similarly taught to use their vision to mentally stay ahead of their aircraft, both anticipating and responding to potential obstacles in their flight path, drivers should, “look ahead to where you will be at least 15 seconds into your future.”
  • “A 15-second eye-lead time provides advanced warning and gives you an additional margin of safety.”

Key 2. Get The Big Picture®

  • Again, like pilot training, this rule is about continually maintaining, complete situational awareness when driving.
  • Drivers are taught to not only look far ahead, but to both sides, and to “Check at least one of your mirrors every 5 to 8 seconds.”

Key 3. Keep Your Eyes Moving®

  • While behind the wheel, the best drivers learn not to fixate on a certain point, and to visually focus where needed.
  • “Keep your eyes moving every 2 seconds.”
  • Visually scanning all intersections and rail-grade crossings
  • Looking for errant drivers

Key 4. Leave Yourself An Out®

  • Leaving an out, means always having a place to go, when there is no other place to go.
  • Manage the space all around the vehicle, leaving a safety cushion, to avoid entanglements with others

Key 5. Make Sure They See You®

  • Always be visible to other drivers
  • Lights are kept clean and on for safety
  • Maintain eye contact with other drivers

In Summary

Distracted driving is on the rise. More people than ever are texting, phoning or driving inattentively. There are more drivers taking meds or combinations of meds that could affect their driving. States are issuing operator licenses to undocumented drivers. There are simply more drivers out there than before and the need for advanced driving skills is greater than ever.

Professional drivers need documented collision-avoidance training to help keep our insurance premiums from rising faster.■

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