When it comes to hammering out the finer details of your haulage contracts, a major factor is the insurance protection your fleet and your cargo has. As you may know, there is no fixed price on insurance, especially on a relatively high-risk enterprise such as the business of transport. But there are ways through which you can significantly reduce your premium and therefore give you better leverage in striking deals with clients.
Taking a Proactive Approach
You probably often hear the word 'proactive', and for good reason: the word stands for many things about running a business, and all of them positive. Being proactive means you do not allow yourself to be on the receiving end of bad business; instead, even at the get-go of crafting new haulage contracts, you take an active part in favour of your own company. In the context of insuring your fleet of vehicles, being proactive means being steps ahead. It is common for companies to wait until an accident happens before taking action, which is bad for business because an accident can cost the company up to ten times the cost of repair. That is why is it important to 'pre-empt' this and meticulously identify underlying situations that may cause accidents in the future-the physical condition of your vehicles, the repairs or upgrades needed, and the on-the-job behaviour of your drivers. Once you've taken care of these factors, you can use it as good leverage when you're insuring your fleet.
Understanding the Three Major Factors that Drive Insurance Premium Price
In the same way your haulage contracts depend on a number of vital operational factors, insurers also calculate the insurance premium using certain points that tug at each other. In the case of the transport industry, that would be the road condition of your routes, the vehicle, and the driver's behaviour. While the road condition is something you cannot do much about, as a manager, you can choose what type of vehicle that can best 'deal' with a given road condition. Moreover, by meticulously keeping the fleet well maintained, with detailed records of all work done, you can significantly bring down the insurance premium price. Then there is the person driving the vehicle: they must be well trained, with proven good road behaviour. Of course, it does help if you can track them all the time, at any location, using GPS tracking devices. That's why if you're working to make good savings on your fleet's insurance, control these three major elements and you'll get what you want.
Shop Around
And because we're speaking of insurance, especially in the context of improving your haulage contracts, we should point out that there is no single fleet insurance provider. So shop around and look for the best deals. One important caveat, though: do not simply choose an insurance coverage based on the price tag, as cheap (especially dirt cheap) means a lot of things have been sacrificed or compromised in order to offer you that low price. Instead, look for insurers with a good track record and the versatility to accommodate your needs.
Norman Dulwich is a correspondent for Haulage Exchange, the world's largest neutral trading hub for haulage contracts in the express freight exchange industry. Over 2,500 transport exchange businesses are networked together through their website, trading jobs and capacity in a safe 'wholesale' environment.
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