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R&R Insurance Blog

Safety Regulations: the High Cost of Non-Compliance

Posted by Brian Balongue

stack of cashIn 2011, DOT-regulated truck, bus and motor coach companies paid $30,674,218 in fines for failure to comply with Federal Motor Carrier Safety Regulations (FMCSRs). The average fine per case was $5,050.

One of the most costly violations is the falsification of a driver log. In these cases, companies paid an average fine of $9,394. The next most costly violation was the transportation of hazardous materials without a properly prepared shipping paper. The average cost in those cases was $8,578.

According to Rob Moseley, head of the transportation department at Smith Moore Leatherwood, juries are relatively accepting of truck drivers who make mistakes. Moseley said in a recent interview, “Juries are much less forgiving when safety issues are ignored at the management level of the company.” Adding, “A trucking company gets to explain two problems or inconsistencies. After that, the jury doesn’t listen and will punish the trucking company.”

Additional costs to a non-compliant company:

  • Increased frequency of inspections and the additional violation fines identified during these inspections
  • More detailed inspections (e.g., more Level 1 inspections) and the associated violations identified
  • Impact on insurance rates
  • Loss of business due to poor CSA scores
  • Reduction in contracted rates for carriers with poor CSA scores

Being compliant means saving money. Contact me to discuss how to take proper actions to keep your company compliant.

Topics: Fleet Safety, Business Insurance