Fleet Management & Forklift Safety Blog

How Telematics Can Impact Warehouse Insurance Costs

Posted by Thelma Marshall on Mar 26, 2019 4:00:00 AM

Telematic insight provides clear advantages for improving fleet management. But did you know it facilitates safer, more effective labor management and may even reduce warehouse insurance costs? investing-4013413_640

In recent years, insurance liability has been influenced by IoT and smart technology. Insurers now look to telematic data that delivers facts versus trying to assess risk using generalized statistics.

For example, not that long ago underwriting for insurance policies involved variables like your employees’ accident history, age and demographics. But today, underwriters leverage telematics and real-time personalized driving statistics to complete their risk assessment.

What does this mean for you? Today’s advanced telematics systems can easily merge important workforce performance data with your labor management systems. When combined, they create solid documentation that helps determine insurance policy needs and costs.

What does this mean for insurers? Telematic-based insurance policies result in 50% fewer claims on average than non-telematic based policies. And automatic accident documentation and notification allows insurers to reduce the time it takes to process claims.

Shared telematic benefits

Using real-time data creates a win-win situation for both employer and insurer by determining any inconsistencies in on-the-job injury claims. This helps to detect exaggerated claims or even cases of fraud.

Telematic data also reduces the frustration of time-consuming forms, lengthy investigations, and paperwork traditionally associated with resolving a claim or potential litigation.

Most importantly, an advanced telematics system  provides historical and real-time data that facilitates a proactive response to risks — versus a reactive response to accidents. Proving your enterprise has a record of safe operation can work to lower insurance costs.

Gains include:

  • Insight on driver behavior — good and bad — so poor habits can be addressed 
  • Fleet monitoring that facilitates customized safety checklists, which will stop vehicle operation if the operator skips steps, the forklift has a mechanical issue, or the driver fails to complete safety protocol
  • Advanced location capabilities to assist with safer warehouse traffic management and speed limit enforcement
  • A dashboard of identified KPIs and events for instant insight 
  • Information around warnings and trends, allowing management to implement their risk-mitigation plan

An advanced telematics platform collects and merges data from all three elements that make up your warehouse operation — inventory, people, and hard assets. This comprehensive, detailed insight gives you, and your insurance provider, the big picture regarding safety practices and accurate levels of risk assessment. 

Topics: advanced locationing, fleet monitoring, injuries, value driven strategies, historical data, lockout/tagout function, accident reporting