Mitigating risk through operational practices

Companies with strong risk profiles leverage their insurance data to make informed decisions about risk management strategies.

As we step into 2025, crane, rigging and specialized carriers find themselves at a pivotal moment to reflect on their operations and set a course for improvement. With rising insurance costs weighing heavily on the minds of industry professionals, there has never been a better time to assess how operational practices can be refined to mitigate risks and enhance safety. By embracing this opportunity for introspection, companies can not only improve their safety performance but also position themselves as more attractive risks to insurance carriers.

To begin the new year on the right foot, consider these tips to become a better risk and set yourself apart from the competition.

Culture is everything

A robust safety culture is the cornerstone of any successful operation, especially when it comes to that operation’s safety performance. Achieving consistently strong safety performance without an established culture is extremely difficult. Organizations that prioritize safety create environments where employees feel secure and valued. To foster a strong culture, it requires:

■ Leadership commitment: Top management must visibly support safety initiatives.

■ Clear communication: Establish clear expectations around safety policies.

■ Employee involvement: Engage workers in safety planning and decision-making processes.

Encouraging workers to speak up and report on safety concerns is crucial for preventing accidents, improving safety practices and strengthening a safety-first culture. An organization that discourages or disincentivizes their employees reporting unsafe practices could create a negative culture.

Make sure within your organization you supply multiple channels for your employees to report issues without fear of retaliation. Additionally, consider creating incentive programs for employees that identify unsafe conditions or behaviors.

The success of construction and transportation companies largely hinges on their ability to hire and retain high-quality employees. Organizations that prioritize training and development initiatives tend to experience greater job satisfaction, enhanced performance, and increased overall productivity. Leading companies continuously assess and refine their training and development strategies for both new recruits and experienced operators. Notably, even seasoned workers gain significant advantages from refresher courses focused on safety protocols, hazard recognition, and the proper use of equipment.

Embrace technology

Over the past two decades, technology has revolutionized the industry, and increasingly sophisticated technologies are becoming more accessible every day. Companies that fail to adopt the right technologies risk being left behind, as the industry leaders around them leverage technological advancements to enhance safety, intelligence and productivity. However, simply having the technology is no longer effective. Your operation must establish a robust infrastructure to effectively manage and integrate these tools.

Transportation companies that actively monitor and evaluate their performance can pinpoint areas for enhancement and implement necessary corrective measures. Leveraging relationships with insurance agents and carriers can provide valuable insights into the frequency and severity of losses compared to similar operations in the region, as well as the types of incidents being encountered. Leading organizations also pay close attention to “near-misses,” which serve as critical indicators for identifying potential risks.

Here are a few key strategies for monitoring and measuring performance:

■ Establish Key Performance Indicators (KPIs): Define clear, measurable KPIs aligned with organizational safety goals.

■ Regular data collection and analysis: Data from technology and telematics can provide insights into vehicle performance, driver behavior, and operational efficiency. Regular analysis helps identify trends and areas for improvement.

■ Continuous monitoring and reporting: Develop a routine for monitoring performance metrics and reporting findings to stakeholders.

■ Benchmarking against industry standards: Compare performance metrics against industry benchmarks or similar operations to identify strengths and weaknesses.

Companies that prioritize safety are eager to share their best practices and lessons learned with both industry peers and competitors. They recognize that enhancing the overall industry standards compels them to elevate their own performance. Engaging in collaboration through industry conferences and associations, such as the SC&RA, offers valuable insights and fosters a culture of continuous improvement. Additionally, insurance carriers organize safety and risk management workshops, creating opportunities for industry leaders to come together. These gatherings promote education and awareness while facilitating the development of relationships.

A competitive advantage

Understanding risk can provide organizations with a competitive edge. Companies with strong risk profiles leverage their insurance data to make informed decisions about risk management strategies. They assess cost of risk by looking beyond premiums to include deductibles and collateral in their overall risk assessment, and risk segmentation by identifying which segments of their operations are most susceptible to loss and develop targeted strategies for those areas.

As we move forward into 2025, reflecting on practices and implementing the strategies outlined above, companies can improve their safety culture and position themselves as better risks to insurance carriers.

ABOUT THE AUTHOR 

Rose Augustin is senior marketing manager for National Interstate Insurance Company based in Richfield, OH. National Interstate Insurance is rated “A+” (Superior) by A.M. Best.