Drive TimesA NORTHLAND INSURANCE RISK CONTROL PUBLICATION ISSUE 2/2016

1–2 Rear-end collisions – costly and preventable | 3 Be a safer, more attentive driver | 4 Adverse weather – it’s time for a plan 5 Tighter controls for food transporters on the way | 6 Northland Insurance risk control and claim services

Inside

1 Forbes Sports Money, Forbes.com, 20162 Pocket Guide to Large Truck and Bus Statistics,

Federal Motor Carrier Safety Administration, 2016 3 2016 Injury Facts, National Safety Council

Rear-end collisions – costly and preventable

What would you do with $112 billion?

You could ...

continued on page 2

Why are we talking BILLIONS? That is what the Federal Motor Carrier Safety Administration (FMCSA) estimates was the cost of all large truck and bus crashes during 2014.2

Rear-end collisions are a significant portion of all vehicle crashes. The National Safety Council estimates that there were 12.3 million vehicle crashes in 2014. Rear-end collisions made up about 4.2 million of those crashes.3 That means that roughly one in three crashes is a rear-end collision.

Buy every NFL football team and every MLB baseball team and still have a few billion left over.1

Buy several private islands.

Or buy every commercial vehicle driver in America a cup of coffee every day for the next 50 years.

ESTIMATED COST PER TRUCK-RELATED REAR-END COLLISION

$1.5M

$1M

$0.5MPROPERTYDAMAGE ONLY

$20,000

INJURY

$472,000

FATALITY

$1.1 MILLION

Source: FMCSA Onboard Safety Systems Effectiveness Evaluation Final Report, October 2013

2 Drive Times | Issue 2/2016

4 FMCSA Onboard Safety Systems Effectiveness Evaluation Final Report, October 2013

5 Virginia Tech Transportation Institute 100 Car Naturalistic Study Fact Sheet

6 NTSB 2015. The Use of Forward Collision Avoidance Systems to Prevent and Mitigate Rear-End Crashes. Special Investigation Report NTSB/SIR-15-01. Washington, D.C.

Avoid distractions Distractions can come in many forms, including mobile devices, fatigue, eating/drinking, reading, passengers and more. According to a Virginia Tech Transportation Institute study, visual inattention is a contributing factor in 93 percent of all rear-end collisions.5 This means many of those collisions could have been reduced in severity, if not prevented altogether, had the driver been focused on the road ahead and the task of driving. Remember, state and federal rules prohibit commercial vehicle drivers from using hand-held cell phones while driving. While hands-free cell phone use is permitted, it too can result in significant distraction. The best policy is to make calls once you are parked.

Manage your speed and space Use the easy-to-remember six-second rule. Just watch the vehicle in front of you as it passes a fixed object, and begin counting six seconds. If you pass the same object before you finish counting, slow down. Speed is a contributing factor in rear-end collisions. Speed affects the time you have to react to a situation. The faster you go, the more distance and time you need to stop. Driving too fast for road conditions presents similar hazards, in addition to the increased risk of losing control of your vehicle.

Resist the urge to tailgate As much as you might like it to, tailgating may not encourage the driver of the vehicle in front of you to go faster or move over. It only increases your risk of causing a rear-end collision.

Anticipate hazards Anticipate that other drivers around you might make an abrupt maneuver that could create a hazard. Is there a traffic jam ahead? If so, you can bet another driver might want to squeeze into the space you need to ensure a safe stopping distance.

Other factors to consider:• Construction zones that some drivers ignore until it’s too late, and they

realize they would rather be in front of you than behind you. • Intersections where other drivers might stop abruptly or fail to stop

as required.• Road and weather conditions that can obstruct your view or increase the

space you need to stop.• Other drivers who may be distracted.

For drivers

The simplest way to avoid rear-end collisions is to stay focused and manage your speed and space. Your best offense is a good defense. Defensive driving is the best place to start!

Collision avoidance technology More and more truck manufacturers are offering crash avoidance technologies, including automatic emergency braking. It might be worth investigating these options when you purchase new vehicles. These systems use both radar and sensors to first alert the driver to a stopped or stationary object, and then apply the brakes if a crash is imminent. The National Transportation Safety Board estimates that 82 percent of fatalities and 93.5 percent of injuries could potentially be avoided by the use of forward collision avoidance technology.6

Telematics Use your telematics system to coach, counsel and communicate with drivers about safe driving techniques. If your telematics system is sending you hard brake alerts, for example, it could be an indication that a driver is distracted, speeding or following too close. A conversation and some guidance could help address the situation and prevent a future crash. The same philosophy applies to speeding alerts. One could be a fluke, but several could signal a problem. Telematics systems can offer a wealth of information about driving behaviors that everyone can learn from. If you or members of your management team drive, this is a good opportunity for you to compare your performance to that of your drivers. You might be surprised by what the data shows. If you are a driver, and your truck has a telematics system, ask about your telematics information and how your performance compares to other drivers in your organization. This valuable information could help protect you from being involved in a serious crash.

For company owners and managers

Technology can help you and your drivers avoid rear-end collisions.

Rear-end collisions – costly and preventable (continued) Unfortunately, these crashes come with a high price tag. The FMCSA estimates that the cost of a truck-related rear-end collision with an injury to be over $472,000, and a fatality to be over $1 million.4

This does not include many indirect costs, such as delivery delays; lost wages; hiring and training replacement staff; and the potential impact on your company’s safety rating, insurance costs, public image, employee morale, etc.

How serious is distracted driving? • The National Highway Traffic Safety Administration estimates

that 10 percent of fatal crashes and 17 percent of injury crashes involve distraction.4

• In a recent Virginia Tech Transportation Institute study, nearly 80 percent of all crashes and 65 percent of all near crashes involved driver inattention. Visual inattention was a contributing factor for 93 percent of rear-end collisions.5

Distractions can come from many sources, not just cell phones. Here’s a list of the most common distractions researchers have catalogued during naturalistic driving studies: • Eating and drinking.• Making or answering

cell phone calls and the use of two-way radios.

• Making adjustments to the vehicle – the radio, CD player, car seat, mirrors, heat and air controls, etc.

• Performing personal grooming – combing hair, shaving, applying makeup.

• Smoking – lighting, extinguishing or retrieving, if dropped, etc.

• Reading – maps, newspapers, paperbacks, business materials, etc.

• Objects in the vehicle that may move while driving.

• Highway accidents.• People in other vehicles.• Highway scenery – new

construction, etc.

All these distractions can affect your crash risk.You have probably seen other drivers who were distracted by these activities, and you have probably been distracted by them yourself. So why is this such a big deal? If you are distracted for a couple of seconds by a billboard message or a quick look at your map, and you are traveling 60 mph, you will travel approximately 176 feet without seeing what is happening around you. Distracted driving is like driving with your eyes closed!

3 Drive Times | Issue 2/2016

Find a safe place to pull over before picking up a dropped item or something behind you.

REACHING

9X2

4 Distracted Driving 2011, Traffic Safety Facts, National Highway Traffic Safety Administration, April 20135 Virginia Tech Transportation Institute 100 Car Naturalistic Study Fact Sheet

Driving today takes a lot of concentration. Distractions are everywhere, not only on the roadway but inside the vehicle as well. As a professional driver, it’s critical to avoid these distractions and focus on the task of driving.

Let’s define a distraction by stating that it generally occurs when a driver is delayed in the recognition of information needed to safely accomplish the driving task because of some event, activity, object or person within or outside the vehicle. In other words, it’s anything that takes your hands, eyes or attention away from driving.

Choose a voice-activated GPS to avoid taking your eyes off the road.

READING

4X2

Talk to dispatch, get directions and make calls before you begin driving.

USING A DISPATCH DEVICE

10X2

TEXTING

23X1

Turn your phone off before you begin driving to avoid the temptation to call or text.

Be a safer, more attentive driver

Be a safer, more attentive driverHow can you avoid distractions and be a safer driver? Here are some tips to get you started:• Read maps and get directions before you start

driving. If you feel you need to go over directions again, pull over at a safe location to do so.

• Don’t get in the habit of eating and driving. If you feel that you must eat in your vehicle, do so while you are parked. You might enjoy it more, and it might not take as much time as you think.

• Mobile devices are important tools that help us work and communicate better. But using a mobile device while driving is dangerous and prohibited in many places. Play it safe. Stop at a safe location before making calls or sending texts. If you get a call or a text while driving, it does not mean you have to answer it. Let your voice messaging system record the call, and return the call or text later when you are parked.

• Smoking can create panic when a lighted cigarette is inadvertently dropped on the floorboard of the vehicle or a butt that was flipped out the window winds up back inside the vehicle! It’s best to take smoking breaks during nondriving time.

This is not an all-encompassing list of distractions or solutions to the distracted driving problem. Hopefully, it is a starting point for you to examine your own driving habits. Determine what changes you can make to be a safer, more attentive driver.

EATING

2X3

Multitasking is hazardous to your health.When you try to do two things at once, your brain is forced to shift focus.

See how the likelihood of a crash increases when you perform these common activities.

1 Forbes Sports Money, Forbes.com, 20162 Pocket Guide to Large Truck and Bus Statistics, Federal Motor Carrier Safety Administration, 2016 3 2016 Injury Facts, National Safety Council

Eat before you begin driving so you can focus on the road.

According to the FMCSA, of the nearly half-million weather-related crashes in 2014, 3,424 were fatalities, 82,000 resulted in injuries and 326,000 were classified as property damage crashes with drivers.1 If you don’t have an adverse weather plan, it’s not too late to put one into place. Having a working plan can help reduce stress and anxiety for your dispatchers, your drivers and your customers. It can also help you avoid weather-related crashes.

Drive Times | Issue 2/2016 4

Source: FMCSA Weather and Climate Impacts on Commercial Motor Vehicle Safety, April 2011

1 FMCSA Large Truck and Bus Crash Facts 2014, March 2016

Source: FMCSA Large Truck and Bus Crash Facts 2014, March 2016

Weather can be unpredictable. Your actions or reactions don’t

have to be. Consider putting a plan in place today!

Be preparedEnsure your drivers are prepared to drive during adverse weather. In addition to the pre-trip inspection, some other precautions include: • Making sure that the weight of the load is

evenly distributed.• Ensuring your tires and brakes are in

good condition.• Carrying extra wiper blades and windshield

washer fluid.• Checking that your headlights, brake lights,

hazards lights and turn signals are clean each time you stop.

• Knowing about chain law requirements, if drivers are traveling to areas where they are required.

Adverse weather – it’s time for a plan

CRASH-RELATED WEATHER CONDITIONS

Be weather awareKnow what road and weather conditions to expect along the route.• Dispatch can keep up to date on road and

weather conditions and inform drivers.• Drivers can download weather apps, review

weather-related websites, or dial 511 to stay informed about road and weather conditions.

• Some telematics devices provide real-time weather information.

Control your speed and spaceSlick road conditions decrease tire traction and increase the time needed to stop. • Slow down and increase your

following distance.• Turn off cruise control. • Accelerate, brake and steer carefully.• Do not use your engine brake.

Watch for high-hazard areasWhen roads are slippery, be especially careful in these areas:• Exit ramps • Bridges • Where black ice may be present• Intersections• Windy areas

ANNUALWEATHER-RELATED CRASHES

3.5M

3M

2.5M

2M

1.5M

1M

5,000

0FATALITIES PROPERTY

DAMAGEINJURIES

Start by asking a few simple questions:• Are your dispatchers staying current

on road and weather conditions, where they are sending drivers?

• Are your drivers staying current on what they are likely to encounter?

• Do they know what to do if they find themselves in adverse weather conditions?

• Do they have the authority to pull off the road and wait for conditions to improve, or are they encouraged to push through and hope for the best?

Have a proactive approachWe can’t change the weather, but we can change how we react to it. If adverse weather can be avoided, then a proactive approach is best. Staying on schedule is important, but if your driver loses control, the shipment will be a lot later than the few hours it would have taken to wait for safer roads. A better approach is to give drivers the authority to determine when road or weather conditions are unsafe. Having the ability to make that decision can help empower them to take the appropriate precautions. Communication is the key. If dispatch stays alert to the adverse weather and communicates with the driver, they can also communicate with customers to let them know about the delay and the new expected delivery time.

60% – Rain32% – Snow

12% – Fog

Exceptions

Certain types of operations are exempt from the requirements of the rule. Some of these include: • Shippers, receivers and carriers engaged in food

transportation operations that have less than $500,000 in average annual revenue.

• Transportation operations performed by a farm.• Transportation of foods that are fully enclosed

and not refrigerated.• Transportation of human food by-products that are used as

animal food with no further processing.

One potential outcome of this rule is that shippers may develop tighter controls for the transportation of foods. This could result in new requirements for carriers to follow stricter protocols for activities like cleaning vehicles, making sure refrigeration units are properly maintained, monitoring temperature records and employee training. Talk to your customers about their plans and start preparing so you are able to meet their needs.

5 Drive Times | Issue 2/2016

APRIL 6, 2018

APRIL 6, 2017

Small businesses with fewer than 500 full-time employees, or carriers with less than $27.5 million in annual receipts, must comply within two years:

Other businesses not defined as small businesses must comply within one year:

Tighter controls for food transporters on the way The Food and Drug Administration’s Food Safety Modernization Act (FSMA) rule on Sanitary Transportation of Human and Animal Food is now final, and it could change the way food is transported for years to come. The rule is intended to help ensure that the U.S. food supply is protected from contamination and spoilage during transportation. Carriers play an important role in food safety, and there are some important aspects of the rule you should know about.

Learn more about the Sanitary Transportation of Human and Animal Food rule at: fda.gov/Food/GuidanceRegulation/FSMA/ucm383763.htm

COMPLIANCE DATES

Compliance dates depend on the size of the business and are based on the publication

date of the final rule: April 6, 2016

Who’s affected?

In general, the new rule applies to shippers, loaders, receivers and carriers involved in transporting human or animal foods by rail or motor vehicle in commerce within the U.S. Shippers are defined as persons who arrange for the transportation of food in the U.S. by a carrier(s), including brokers. “Carriers” are defined as persons who physically move food by rail or motor vehicle in commerce within the U.S., regardless of ownership of the vehicles.

Key requirements

Shippers, brokers, carriers and receivers all have responsibilities under the rule’s key requirements:• Vehicles and transportation equipment. Vehicles must be designed and

maintained to ensure food is kept safe. This includes, for example, making sure vehicles are suitable for the job, adequately cleaned and capable of maintaining required temperatures.

• Transportation operations. Procedures must be in place to ensure food is kept safe from spoilage or contamination during transit. Adequate refrigeration and steps to prevent contamination are key.

• Training. Personnel involved in transporting food must receive training to understand procedures and responsibilities designed to keep food safe.

• Records. Records of written procedures, agreements and training must be kept.

Primary responsibility for meeting these requirements rests with the shipper, who may rely on contractual agreements to set requirements for carriers. Shippers must develop and implement written procedures to ensure:• Equipment and vehicles are in appropriate sanitary condition.• Previous cargo does not make food unsafe, when food is transported in bulk. • Food is transported under adequate temperature control.

Shippers may contractually require that carriers provide certain equipment, have procedures for cleaning and maintaining that equipment, and training employees. For example, the shipper and carrier can agree on a temperature monitoring mechanism for foods that require temperature controls for safety. There are a number of effective ways for ensuring temperature controls during transit. It is up to the shipper and the carrier to agree on a method. The shipper may also require the carrier to provide temperature records.

Training is another important part of the new rule. Shippers may require carriers to provide training to employees so they understand procedures and responsibilities for keeping food safe. Contracts between the shipper and carrier may set requirements for providing training and keeping training records.

The content of this publication is only for the informational use of the reader. Information contained herein is not intended as, nor does it constitute, legal or professional advice, nor is it an endorsement of any source cited or information provided. In no event will Northland, Travelers or any of their subsidiaries and affiliates be liable in contract or in tort to anyone who has access to this publication for the accuracy or completeness of the information relied upon in the preparation of this publication or for the completeness of any recommendations from cited sources. Readers should consult source articles for more detail. This publication does not amend, or otherwise affect, the provisions or coverages of any insurance policy or bond issued by Northland or Travelers, nor is it a representation that coverage does or does not exist for any particular claim or loss under any such policy or bond. Coverage depends on the facts and circumstances involved in the claim or loss, all applicable policy or bond provisions, and any applicable law.

Drive Times

A Northland Insurance Risk Control Publication | Issue 2/2016

Our goal is to save you time and money by helping you manage your fleet loss exposures. The following is a brief summary of the services and materials available to you as a Northland customer. For additional information, call our Risk Control department at 800.237.9334. Choose option 1, then dial ext. 10527.

Local Risk Control consultants. Our experienced staff is available to answer your questions about transportation safety best practices, regulatory topics and Northland’s risk control services.

Loss prevention and Department of Transportation (DOT) compliance materials. Access Northland’s wide selection of free safety management, regulatory compliance and driver safety training resources on our website, northlandins.com. From the Services tab, select Risk Control and click on the link to our Risk Control Customer Portal.

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Northland’s claim center is available to handle claim reporting 24 hours a day, seven days a week. Reporting a claim is easy.

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Tighter Controls for Food Transporters on the Way