The integration of telematics and wearable technology represents a significant shift in how trucking companies manage risks – and look after the mental wellbeing of their people. Now, in the age of AI, telematics are evolving to provide feedback on driver behaviour, vehicle movement and optimal route guidance, revolutionizing the industry and its employees.
Speaking to IB, Joe Bukovsky (pictured), vice president of transportation workers’ compensation programs at PMC Insurance Group, a subsidiary of One80 Intermediaries, said this data can be used to prevent accidents, reduce claims, save fuel, and ensure quicker routes are being utilized.
“Wearable technology has progressed and can be used to monitor how drivers load and unload packages, assuring they’re using the proper lifting techniques to prevent injuries,” Bukovsky said. “All of that data feedback can be used by trucking companies to assure protocols are being followed, discussed in safety meetings and provide individual driver feedback.”
What’s more, there’s now an increased focus on driver’s psychological wellbeing and the monitoring of their fatigue levels.
“[They spend] a lot of time away from family,” said Bukovsky. “Along with the struggles of dealing with road construction, increased traffic, unpredictable weather, parking shortages and time sensitive freight can cause a stressful environment. Recognizing the high stress nature of trucking, we are seeing more counselling and wellness programs being offered.”
Early intervention and support for mental health issues, identified through signs like persistent fatigue, irritability, changes in appetite or sleep patterns, social withdrawal, and feelings of hopelessness, are becoming increasingly important. Another major development is the surge in nuclear trucking lawsuit verdicts, with massive payouts affecting the industry significantly.
“Over the last 10 years, the average verdict size for a trucking crash has increased 1,000%,” said Bukovsky. “Multimillion dollar settlements are commonplace - this forces insurance costs up and can even drive trucking operators out of business. Juries are becoming less forgiving, so maintaining a well-run operation with good FMCSA scores are critical. Screening and training the right new drivers, retaining experienced drivers and implementing a strong safety culture is extremely important in protecting drivers and managing costs.”
PMC’s broad transportation workers’ compensation program covers various industries of trucking, from short-haul to long-haul, flatbed, sand & gravel, and specialized deliveries.
“We handle almost every class that has wheels,” he told IB. “And they’re all so different… they all have their individual risk management needs. With an account that performs parcel delivery, gets out of their van door to door and has to deal with dogs, slip and falls and going on someone’s porch – that’s different than a long haul truck driver who’s on the road for long periods of time and can get road fatigue, has to deal with traffic, construction and other hazards. Their needs are different - it’s our job to know what they need and how to help with risk management. We have accounts who need assistance lowering their MOD, others need a Return To Work program, or another may need a shoe program to help mitigate slip and fall claims. We can offer specialized risk management depending on their needs, we do not use a “one-size fits all” approach”
Another tailored solution is the “pay as you go” insurance program.
“Instead of just paying flat monthly installments, clients can report their payroll bi-weekly or monthly and pay their bill accordingly,” Bukovsky explained. This approach is perfect for accounts with fluctuating payrolls, such as those busy during certain seasons. It avoids the issue of large audits at the end of the policy term, allowing clients to manage their cash flow more effectively.
Regulatory challenges, particularly regarding the classification of drivers as independent contractors or employees, also pose significant hurdles.
“There is the evolving regulatory requirements regarding owner operator classification as independent contractors – that’s an ongoing issue,” adds Bukovsky. “We can assist with these situations in numerous ways. For one, we’ve helped trucking companies that previously classified all their drivers as independent contractors and have a lack of workers’ compensation policy to transition their drivers to W2 status and secure a workers’ comp policy for the first time. That’s a unique challenge as many underwriters will view them as a new venture, having never previously had insurance and declined account.”
Secondly, Bukovsky’s team has access to programs that underwrite a mixed driver fleet, ensuring that W2s and independent contractors are all correctly covered by using an insurance policy. “We call it a three legged stool,” he told IB. “That consists of workers’ compensation, occupational accident and contingent liability. This type of policy ensures that all workers are insured correctly and avoids any audit issues.”
“The impact of new industry technologies such as telematics, wearables, cameras and driver monitoring systems will be a huge benefit to the industry. Having camera footage of accidents and injuries is critical, and can dramatically impact a claim or settlement. Keeping truck drivers alert, happy and on the safest, quickest routes will lead to less problems on the road.”
Lastly, assuring that drivers are lifting, loading and unloading correctly and using the correct equipment should lead to less injuries. Something that’s always reinforced by PMC’s team of industry experts.
“The insurance carriers we partner with are all dedicated to the trucking industry,” added Bukovsky. “Our underwriters, risk managers, claims professionals, and the niche programs we access, are unique - they understand the challenging and changing trucking landscape.
“We believe that having the correct insurance carriers and partners dedicated to the industry is important to investigating fraudulent claims, assisting with risk management, new technology and driving insurance costs lower and ultimately keeping drivers safer.”
