It’s safe to say that the way we shop has changed for good. The 2020 pandemic hastened the trend toward online shopping and the sound and sight of trundling delivery vehicles is now a nearly hourly feature of many neighborhoods.
Today’s shoppers demand speed and convenience above all else, which has caused most major retailers to reorient themselves to cater to a primarily online base of consumers. For better or worse, people have shown they prefer to shop for everything from clothes to furniture from the comfort of their own home. This meteoric growth in ecommerce and direct shipping has created a corresponding boom in the logistics industry to the point that many companies struggle to get orders out on time.
As opportunities abound in the supply chain, existing fleets are looking to expand and new entrants are gearing up to fill the extra orders and make their fortune. In order to do so, however, these new entrants are going to need to ensure that their businesses comply with safety regulations and that their fleets and drivers are protected once they hit the road.
What are the safety requirements for FMCSA compliance?
Last mile logistics typically use box trucks, step vans, and cargo vans for their deliveries, all of which are categorized as motor carriers and are subject to FMCSA regulations as well as local ordinances. This means proper fleet vehicle certifications, record checks, maintenance schedules, and, of course, proper training for new drivers.
Driving a vehicle is an inherently risky and dangerous activity, and the more time on busy local streets, the more likely it is for your vehicle to become involved in an accident. New, inexperienced drivers need to be well trained to avoid preventable accidents caused by aggressive driving habits (the cause of 50% or more of accidents) or distractions (the cause of 15% of accidents and growing).
Fleet accidents are one of the biggest dangers to both wallets and reputations for new and expanding logistics companies. The FMCSA estimates that on average:
- A no-injury crash involving a fleet vehicle will cost the company $22,000
- A crash involving injuries will cost the company $331,000
- A crash involving a fatality can cost up to $7.2 million!
These costs are one of the leading causes of business failure for logistics companies in the U.S. To keep your business, your drivers, and innocent bystanders safe, you need to invest in proper training for your drivers, maintenance, and insurance for your fleet vehicles.
What is last-mile insurance, and why is it beneficial for truck drivers?
There are risks involved with any enterprise, but when your business is dependent on an activity that carries more risk than average like driving, it pays to hedge your bets. Last mile trucking insurance provides financial protection for your company from costs associated with the accidents you’re most likely to see while on the road.
Last mile insurance gives your business coverage for injuries of drivers, third parties, and cargo being delivered by your vehicles. Last mile covers everything from the parcels you get on Amazon to furniture, appliance, and exercise equipment deliveries as well as the assembly exposure for your delivery teams. That means that cargo that is damaged or lost during transit or during assembly is covered by your insurance, so you don’t need to worry about the loss of an expensive piece of equipment destroying your business due to theft or an accident.
With the protection offered by your insurance policy, it’s important to ensure that all your t’s are crossed and i’s dotted when filing the paperwork for deliveries. Finding a solid insurance broker who can clearly communicate what items are essential for complying with their policy helps facilitate the paperwork and make sure that each delivery is safe and secure.
Creating an environment of strong communication and lasting relationships with clients is a specialty of S.W.A.N. Insurance. S.W.A.N. will not only find you the best coverage and prices for your policies but work together with you to ensure that you know exactly what is expected of your company’s safety and compliance procedures so you’ll never be left to fend for yourself if an accident were to occur.