Issue
A regional beverage distributor with a rapidly expanding delivery fleet was experiencing a high frequency of preventable, driver-related claims. These incidents were driving up auto insurance premiums, increasing total cost of risk, and triggering heightened scrutiny from the Department of Transportation (DOT).
Solution
CBIZ partnered with the distributor to shift fleet safety from reactive claims management to proactive, data-driven risk prevention. Our team:
- Created a driver behavior model that identified underlying risk drivers vs. claims correlation.
- Worked with the insured to implement driver coaching sessions.
- Recommended the insured invest in enhancing their current GPS-based telematics.
- Partnered with the distributor’s leadership to implement accountability and performance-based incentives for drivers.
Leadership reviewed monthly dashboard reports showing telematics, driver safety scores, and claims activity. This enhanced visibility, paired with rewards for improvement, increased driver accountability and safety.
Outcome
Within 18 months, the beverage distributor’s accident rate dropped significantly, and the insurance carrier reclassified the insured from high risk to moderate risk. The company avoided a potential 20% premium increase, turning fleet safety into a competitive advantage. Results included:
- 40% reduction in preventable loss frequency over 18 months.
- 26% improvement in driver safety scores.
- $200K in avoided premium expenditures over two years.
- Preferred classification rating achieved in the latest renewal.
| Company Information | |
|---|---|
| Industry | Food & Beverage |
| Geographic Footprint | Mid-Atlantic Region |
| Number of Employees | 260 |
© Copyright CBIZ, Inc. All rights reserved. Use of the material contained herein without the express written consent of the firms is prohibited by law. This publication is distributed with the understanding that CBIZ is not rendering legal, accounting or other professional advice. The reader is advised to contact a tax professional prior to taking any action based upon this information. CBIZ assumes no liability whatsoever in connection with the use of this information and assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein. Material contained in this publication is informational and promotional in nature and not intended to be specific financial, tax or consulting advice. Readers are advised to seek professional consultation regarding circumstances affecting their organization.
“CBIZ” is the brand name under which CBIZ CPAs P.C. and CBIZ, Inc. and its subsidiaries, including CBIZ Advisors, LLC, provide professional services. CBIZ CPAs P.C. and CBIZ, Inc. (and its subsidiaries) practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations, and professional standards. CBIZ CPAs P.C. is a licensed independent CPA firm that provides attest services to its clients. CBIZ, Inc. and its subsidiary entities provide tax, advisory, and consulting services to their clients. CBIZ, Inc. and its subsidiary entities are not licensed CPA firms and, therefore, cannot provide attest services.
