Chauffeur Talk A NORTHLAND INSURANCE RISK CONTROL PUBLICATION ISSUE 1/2017

1 Visit northlandins.com today! | 2 Be a safer, more attentive driver | 3 Marijuana – legal in many states, but is prohibited by the Department of Transportation | 4 Larger vehicles can mean bigger safety responsibilities | 5 Are you the safe driver you think you are? 6 Northland Insurance risk control and claim services

Inside

Visit northlandins.com today!

From the home page, select “Services,” then “Risk Control.” Click on the “Public Auto” link to access our extensive collection of safety resources with easy-to-follow menu options featuring:

• Accident management

• Driver management

• Driver health and wellness

• Safe driving

• Safety management

• And more

Visit frequently for updates and to access our collection of safety articles, management guides, Department of Transportation (DOT) regulation guidance, links to important industry websites and more.

Safety and risk control is always an important topic. We encourage you to utilize these valuable, industry-leading resources to help you keep your drivers and company safe.

We have updated northlandins.com with a new and improved risk control site, featuring valuable resources to help you manage your fleet safely and reduce the risk of loss.

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 cellphones. Here’s a list of the most common distractions researchers have catalogued during naturalistic driving studies: • Eating and drinking.• Making or answering cellphone 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.

• 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.

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.So, what is a distraction? It’s an event, activity, object or person inside or outside the vehicle that takes the driver’s hands, eyes or attention away from safely accomplishing the driving task.

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 miles per hour, you will travel approximately 176 feet without seeing what is happening around you. Distracted driving is like driving with your eyes closed!

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.

• 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 can 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 text messages. 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.

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, less distracted driver.

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

REACHING

9X2

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

TEXTING

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

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.

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

2 Chauffeur Talk | Issue 1/2017

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

1Driver Distraction in Commercial Vehicle Operations, FMCSA, September 20092https://www.fmcsa.dot.gov/sites/fmcsa.dot.gov/files/docs/FMCSA-RRR-09-042.pdf3Ergonomics in Design: The Quarterly of Human Factors Applications, October 2011

Since the recent presidential election, 28 states and Washington D.C. have comprehensive marijuana use laws. Eight of the 28 states and Washington, D.C. have legalized recreational use, while the remainder have legalized medical use.1 This means that nearly one-quarter of the U.S. population now lives in a place where marijuana use is legal in some way.2

With regulated marijuana sales in North America projected to total $6.9 billion in 2016, and increase to $21.6 billion by the year 2021,3 this issue is not likely to go away anytime soon. To put it into perspective, in Colorado alone there are 996 retail/medical marijuana storefronts4 compared with 322 Starbucks5 and 237 McDonald’s.6

The ongoing trend toward marijuana legalization can pose problems for transportation companies and professional drivers who are unaware that state legalization does not mean use or possession is allowed by the Department of Transportation (DOT).

According to the DOT, these new state laws have no impact on federal drug and alcohol testing regulations for commercial vehicle drivers. State and federal rules continue to require that all drivers who operate vehicles requiring a commercial driver’s license (CDL) be subject to DOT drug and alcohol testing rules.

The DOT Office of Drug and Alcohol Policy and Compliance has sent a clear message: marijuana is a Schedule I controlled substance, and the use of marijuana by commercial drivers is prohibited.7 Regardless of the circumstances, a driver who tests positive on a DOT drug test can be disqualified from driving a commercial vehicle.

Unlike alcohol, there is no standardized legal limit for marijuana. In most states, any amount of the substance can be grounds for a DUI charge, whether the driver is actually impaired or not. That means a driver who legally uses marijuana could be disqualified from driving if he or she later tests positive after a drug test. The initial effects of marijuana use generally wear off within several hours; however, the substance can remain in a person’s system for weeks and result in a positive drug test long after the initial use of the drug.

Each state has its own established criminal penalties associated with marijuana-related DUIs. For a first time offense, court-assessed fines can be as high as $6,250, and some states have a mandatory jail sentence from 24 hours to two years, depending on the circumstances.8 If there are aggravating factors, such as having a minor in the vehicle, causing a traffic accident or refusing to submit to a chemical substance test, fines and penalties can be increased.

Other associated costs resulting from a conviction for driving while impaired can include attorney fees, jail costs, treatment programs and increased insurance costs. But for professional drivers, these costs are minor compared to the loss of employment and the end of a professional driving career.

Given the widespread legalization of marijuana, the potential confusion over rules for professional drivers and the serious consequences from positive drug tests, it’s a good time to review your drug and alcohol testing program. Here are some things to consider:

• Does your drug and alcohol testing program meet all state and federal requirements? Information about the DOT drug and alcohol testing rules is available on the DOT Office of Drug and Alcohol Policy and Compliance website at transportation.gov/odapc.

• Have you reviewed your program and policies with your drivers? Some drivers may not understand that marijuana use, while legal in some states, is prohibited by the DOT.

• Do managers understand the consequences and procedures that must be followed after a violation of drug and alcohol rules, even when the violation involves the use of marijuana in a state where it is legal? Failing to follow the regulations can jeopardize your company’s DOT safety rating and result in severe fines and penalties.

Marijuana – legal in many states, but is prohibited by the Department of Transportation

1National Conference of State Legislatures, ncsl.org2These States Just Legalized Marijuana, Time Magazine online, Nov. 10, 2016, accessed 3/10/17 3Legal Marijuana Sales Could Hit $6.9 Billion in 2016, Fortune Magazine online, Feb. 2016, accessed 3/10/174Medical and Retail Marijuana Facilities, Colorado Department of Revenue online, accessed 3/10/17

A driver who legally uses marijuana could be disqualified from driving if he or she later tests positive after a drug test.

5Starbucks Stores by State, StateMaster.com, accessed 3/10/176The Number of McDonald’s in all 50 States, 24/7 WallSt.com, accessed 4/17/177DOT “Medical Marijuana” Notice, U.S. Department of Transportation, Feb. 1, 20178Driving Under the Influence of Marijuana, Criminal Defense Lawyer

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Hiring standards. It’s important to carefully consider who is driving your large-seating-capacity vehicles. Having the right driver is critical to the safety of your passengers and the reputation of your company. Look for drivers who have experience driving the types of vehicles you have, and who have a high level of maturity and good judgment.

You will also need to have a complete driver qualification file for each driver that includes an employment application, previous employment verifications, a motor vehicle record review and a certified medical examiner’s certification.

If you employ drivers who have worked as truck and bus drivers, take advantage of the Federal Motor Carrier Safety Administration’s Pre-Employment Screening Program (PSP). This program provides information about drivers’ involvement in roadside inspections during the past three years and crash history during the past five years. You can obtain this information for a nominal fee at psp.fmcsa.dot.gov.

Commercial driver’s license (CDL). Drivers who operate passenger vehicles designed for or used to transport 16 or more passengers, including the driver, or have a gross vehicle weight rating of 26,001 pounds or more, must have the appropriate class CDL license with a “passenger” endorsement. For vehicles equipped with air brake systems, the driver’s CDL must not have an air brake restriction.

Drug and alcohol testing. Companies that operate vehicles that require a CDL license must have a drug and alcohol testing program that meets Department of Transportation (DOT) requirements as outlined in 49 CFR Parts 40 and 382 of the Federal Motor Carrier Safety Regulations. This includes pre-employment, random, post-accident and reasonable suspicion testing, among other things. The DOT has several helpful resources explaining these requirements at transportation.gov/odapc.

Driver training. When a driver is hired, provide an in-depth driver orientation session. In addition to operational aspects of the job, orientation training should include defensive driving, a documented road test, and safety policies and procedures.

Northland has a range of complimentary resources that can assist you in your driver hiring, qualification and training efforts. You can access these resources on our website at northlandins.com. For more information, see the Northland Insurance risk control and claim services section of this newsletter.

Insurance requirements. Insurance requirements vary depending on the vehicle’s passenger capacity and whether the vehicle is being operated in intrastate or interstate commerce. Vehicles being operated in interstate or foreign commerce are subject to the federal insurance requirements (49 CFR Part 387.25 through Part 387.41). When designed for or used to transport 15 or fewer passengers, including the driver, these vehicles require $1.5 million in insurance coverage. When these vehicles are designed for or used to transport 16 or more passengers, including the driver, $5 million in insurance coverage is required.

State requirements apply to vehicles being operated in intrastate commerce. Although some state requirements mirror the federal requirements, insurance limits can vary from state to state. Check with your state to determine the applicable insurance requirements for the types of vehicles you are operating.

Larger vehicles can mean bigger safety responsibilities

Go to northlandins.com to access resources that can assist you in your driver hiring, qualification and training efforts.

Adding large-seating-capacity vehicles to your fleet may help you expand your business, but it can also require compliance with important safety regulations. Before you add these vehicles, make sure you are prepared for the added safety responsibilities.

Here are five areas where adding large vehicles to your fleet may require you to change how you manage your drivers and your safety program.

Having the right driver is critical to the safety of your passengers and the reputation of your company.

Northland has a range of complimentary resources that can assist you in your driver hiring, qualification and training efforts. You can access these resources on our website at northlandins.com. For more information, see the Northland Insurance risk control and claim services section of this newsletter.

5 Chauffeur Talk | Issue 1/2017

12016 Mail Survey about Driving Behaviors, Colorado Department of Transportation, https://www.codot.gov/library/surveys/2016-driving-behaviors-survey

It’s not too late to adjust your driving behaviors. The next time you get into a vehicle, stay focused on the road, your surroundings and your driving skills. Become the safe driver you identify yourself to be. Now give the quiz above to your friends and family, and see how they do!

Are you the safe driver you think you are?

A recent survey asked respondents to identify which activities they had participated in while driving during the last seven days.1

Are you the safe driver you think you are? Here is a short quiz to help you evaluate your driving skills and behaviors that help make you a safe – or unsafe – driver. (Hint: Honest answers yield honest results.)

1. I rarely or never exceed the speed limit by 10 mph or more.

True False

2. When approaching a light that has turned yellow, I slow down and stop.

True False

3. I inspect my vehicle daily. True False

4. I rarely or never get angry at rude or aggressive drivers

True False

5. I keep a three-second following distance.

True False

6. I have not been involved in a preventable accident during the past year.

True False

7. I rarely or never talk on a cellphone while driving.

True False

8. I have not been stopped for a moving violation during the past year.

True False

9. I always wear a seat belt. True False

10. I scan 10–12 seconds ahead while driving.

True False

11. I never text and drive. True False

12. I get seven or more hours of sleep each night.

True False

Results:10–12 “True” responses: Good job, but consider the safe driving behaviors where you answered “False.”

7–9 “True” responses: Sincere effort should be made to improve your safe driving skills in several areas.

6 or fewer “True” responses: It’s time to adjust your priorities and become a safer driver!

Next time you find yourself behind the wheel, take note. Did you just reach for your ringing cellphone, your travel mug or that sandwich you just got at the drive-thru? These are conveniences for sure, but aren’t they also distractions? Have you accelerated to make it through a yellow light or to get around that person “slowing things down”? How far over the speed limit do you think is OK to drive?

Most drivers consider themselves to be good/safe drivers, and often believe other motorists are the problem. But to accurately rate their skills, they must look carefully at their own driving behaviors to see where they can improve, and to recognize where seemingly innocent behaviors are actually dangerous.

A recent survey asked respondents to identify which activities they had participated in while driving during the last seven days.1 Seventy-two percent admitted to eating; 61 percent talked on a hand-held cellphone; and half admitted that they had read a text message, email or social media post. Less than half stated that they had sent a message while driving. When asked about speeding, nearly all of those surveyed agreed that they speed at least on occasion. Only 4 percent of all respondents stated that they never speed.

72 %61%

50 %

EAT

TALK ON A HAND-HELD CELLPHONE

READ A TEXT MESSAGE, EMAIL OR SOCIAL MEDIA POST

We all like to believe that we are safe drivers. But are we as safe a driver as we think we are?

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.

Chauffeur Talk

A Northland Insurance Risk Control Publication | Issue 1/2017

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Visit northlandins.com, a Northland Insurance website for transportation company owners, and one of the industry’s most comprehensive resources for insurance and safety. It’s free!

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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 extension 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 to access our Risk Control Customer Portal.Claims services. Northland’s claim professionals and industry-leading claim response help get you back on the road faster. Our ability to respond quickly and effectively to claims is of primary importance. With more than 65 of experience, you can trust Northland to handle your claims promptly and professionally.

Northland Insurance risk control and claim services

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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.Phone: 800.328.5972 (24/7)Fax: 866.248.4608Email: NCCC@northlandins.com

A recent survey asked respondents to identify which activities they had participated in while driving during the last seven days.1