Accidents happen. We all know, expect, and try to prepare for this inevitable reality. If a driver hydroplanes on a wet highway, only the weather is often to blame. However, a cost will still be incurred as the damage is assessed. If no injuries or other vehicles are involved, the cost will be limited to the vehicle repairs. Unfortunately, this can still add up quickly.
Take this story for instance. Jim, a seasoned driver for a commercial fleet, is finishing his run when a heavy thunderstorm hits, causing him to lose control of his vehicle. Fortunately, his vehicle skids on the wet highway without causing injuries or damage to other vehicles. Unfortunately, he struck a guardrail and there was front-end damage. The vehicle is towed to the company’s preferred repair facility, where the owner is informed that the part needed is on backorder and will be unavailable for 10-14 business days. Since Jim’s vehicle is necessary for business to continue, the company must now obtain a rental vehicle. The costs incurred from a minor accident are mounting.
The high cost of damage repair to vehicles has become an ongoing problem for insurers and our clients. While the pandemic brought this issue to the forefront of our industry, the continued rising costs can be attributed to many factors such as:
Supply Chain Issues
When a vehicle part is not available, it causes problems for our customers and the insurance company. Sometimes a car has been fixed but can’t be driven because the microchip or semiconductor is unavailable. This means the insurance company has to pay for a rental car for longer, and our customers have to wait longer to get their car back.
Reduced Workforce
As a whole, the automobile industry is down 30% in its workforce, leading to a higher cost of wages. The higher cost of workers causes higher labor rates for repairs. The cost of parts built by industry workers is also on the rise. As a result, all of these costs are passed on to the consumer.
Electric Vehicles
It is predicted that by 2030, 35% of North American vehicle production will be electric vehicles. Manufacturers are spending lots of money changing their designs as well as engineering new ways to assemble vehicles as the electric vehicle movement evolves. This race toward tomorrow’s electric automobiles drives up repair costs on today’s vehicles.
How Can We Help?
Agents and consumers should expect rate increases to keep up with the cost of parts and labor and ensure product viability. Steps consumers can take in the commercial auto space to help control these long-term costs include:
Evaluate Deductibles: A deductible is the amount the insured pays in the event of a loss. While increasing your deductible will not entirely offset rate increases, it is a way to control costs by taking on more risk yourself. Talk with your agent about this option so you understand the pros and cons of high and low deductibles for collision.
Maintain Fleet Safety: Implement safety training programs, carefully select and train drivers, and monitor performance to reduce auto physical damage risks. An agent can help evaluate your fleet safety program for optimal results.
Usage of Onboard Technology: Onboard fleet technology is an upfront cost with long-term cost savings. When used in conjunction with driver training, onboard technology can lead to decreased losses over time. Companies can use data from the following technologies to coach poor behavior and reward strong operators:
Onboard cameras
Tracing units that understand driver behavior
Safety Equipment to alert drivers to potential hazards
CWG offers resources for fleet safety programs and onboard technology. Together with agents and customers, we evaluate the current state of these items and work to define a go-forward plan.
While we cannot control supply chains and workforce reduction, we can help you be proactive and ready to handle the rising costs of APD.
The What’s What in Auto Physical Damage (APD) was last modified: December 4th, 2024 by Lance Randolph
TERMS OF SERVICE AGREEMENT
Welcome to the Continental Western Group® E-Pay Express online bill payment services website, which provides bill payment options and services (such website, options, and services are individually and collectively referred to herein as the “E-Pay Express Services”) available to customers of the Continental Western Group®, an operating unit of Berkley Insurance Company, and affiliated companies (referred to herein as “OU acronym, i.e. “CWG”). CWG® is willing to provide the E-Pay Express Services to you, a customer of CWG, only upon your agreement that your access to and use of the E-Pay Express Services will be subject to the following E-Pay Express Terms of Service Agreement (the “Agreement”). This Agreement describes the terms and conditions under which CWG will make E-Pay Express Services available to CWG’s customers (“you”). The Agreement may be revised without notice and will become effective upon posting on this site and your use of the E-Pay Express Services.I. DEFINITIONSThe following defined terms are used in this Agreement: E-Pay Express is a service you can use to view and pay your CWG bill online securely. CWG has licensed the right to use E-Pay Express from an unaffiliated third party, Fifth Third Bank. and/or its affiliates (“Fifth Third”). Account means the Account with CWG to which you authorize a bill payment to be directed. Payment Instruction means your instruction and authorization to E-Pay Express to make a bill payment to your Account. Payment Account means the bank account that you authorize E-Pay Express to debit when you make your bill payment using account information from your personal or business checking or savings account. Payment Card means the credit or debit card that you instruct E-Pay Express to charge to pay your bill payment. Business Day means Monday through Friday, excluding Federal Reserve holidays. Scheduled Payment Date means the Business Day of your choice upon which E-Pay Express will attempt to complete your bill payment and initiate the appropriate debit to your Payment Account or Payment Card. CWG includes the following affiliated companies of Berkley Insurance Company: Acadia Insurance Company, Continental Western Insurance Company, Firemen’s Insurance Company of Washington, D.C., Tri-State Insurance Company of Minnesota, Union Insurance Company (collectively referred to herein as “Insurers”). All payments processed through E-Pay Express Services are paid to CWG on behalf of itself or one of the Insurers listed above; however, each of the Insurers has sole financial responsibility for its own products and services, including the E-Pay Express Services provided in connection with those products and services. You should refer to your insurance policy for the applicable Insurer.II. DESCRIPTION OF E-PAY EXPRESS SERVICES A. The E-Pay Express Services provide you with access to various online resources, including applications that allow you to view your CWG bill. Unless explicitly stated otherwise, any new features that augment or enhance the current E-Pay Express Services, including the release of new services, shall be subject to this Agreement. Upon your acceptance of this Agreement, CWG grants you a personal, nonexclusive, non-transferable license to access and use the E-Pay Express Services, subject to this Agreement, solely for the purpose of viewing and paying your Account electronically. The foregoing license includes the specific rights to use the available applications and functionalities of the E-Pay Express Services and to print information from the E-Pay Express Services. CWG and Fifth Third do, however, reserve the right to, without notice: (a) modify, suspend or terminate operation of or access to the E-Pay Express Services at any time for any reason; (b) modify or change the E-Pay Express Services or its applicable operating policies at any time; and (c) interrupt the E-Pay Express Services as necessary to perform routine and non-routine maintenance, error corrections, or other changes. CWG also reserves the right to modify this Agreement at any time, in which case you will be provided notice that the Agreement has been changed. Your continued use of the E-Pay Express Services after said notice of the changed Agreement constitutes your agreement with and acceptance of the changed Agreement.
BILL PAYMENT SERVICE
(a) When you initiate a Payment Instruction, you authorize E-Pay Express to charge your Payment Card or debit your Payment Account and remit funds to CWG on your behalf so that the funds arrive to pay your bill as close to the Business Day designated by you as is reasonably possible. While it is anticipated that most transactions will be processed on the day you choose, it is understood that due to circumstances beyond the control of CWG and Fifth Third, some transactions may take a day or so longer to be credited to your Account.(b) If E-Pay Express is unable to obtain funds for a bill payment for any reason associated with your Payment Card or Payment Account (for example, there is not a sufficient balance available on your Payment Card or in your Payment Account to cover the transaction), then we will not be able to complete your bill payment transaction. If there is a problem in processing your Payment Instruction, CWG or Fifth Third may attempt to contact you, using the telephone number you have provided(c) If E-Pay Express makes a bill payment to your Account, but is unable to obtain funds for that payment from your Payment Card or Payment Account, you agree that your bill payment will be reversed.III. LIABILITY FOR FAILURE TO COMPLETE TRANSACTIONSA. E-Pay Express will use commercially reasonable efforts to process your bill payments in accordance with your Payment Instructions. However, CWG and Fifth Third shall incur no liability if a bill payment is not made in a timely manner or if any payments initiated by you through the E-Pay Express Services cannot be completed because of any one or more of the following circumstances:
Sufficient funds are not available through your Payment Account or your Payment Card;
Any failure on the part of CWG or Fifth Third to account correctly for or credit the payment in a timely manner, or any other mishandling of your payment by CWG or Fifth Third;
The E-Pay Express Services are not working properly and you know or have been advised by CWG or Fifth Third about the malfunction before you execute the transaction;
You do not provide CWG or Fifth Third with all required information to complete the bill payment, such as your correct name, telephone number, or your complete and correct Payment Card or Payment Account information; or
Circumstances over which CWG or Fifth Third have no control include, but are not limited to, large-scale technical malfunctions, including, but not limited to, loss of access to the Internet or loss of access to the Federal Reserve System, prolonged outages of telephone lines, electricity or similar infrastructure, acts of God, war, riot, civil disobedience or similar events of insurrection, governmental or court orders, regulatory or legislative changes by any local, state or federal governmental agency, strikes, work stoppages or other similar occurrences or circumstances.
IV. USER NAMES AND PASSWORDSA. During the registration process for the E-Pay Express Services, a User Name, and Password (collectively, “Authentication Materials”) will be established for your use in accessing the E-Pay Express Services. The Authentication Materials are intended for your use only. You agree: (a) not to disclose such Authentication Materials to any third party, (b) to take reasonable care to protect such Authentication Materials from inadvertent disclosure to third parties, and (c) to immediately notify CWG of any loss or unauthorized use of such Authentication Materials. You agree that you will be responsible for all actions taken using your Authentication Materials.V. YOUR REPRESENTATIONS.A. You hereby represent to CWG and agree that:
any and all information that you provide to CWG or Fifth Third to use the E-Pay Express Services will be accurate and complete;
you will not use the E-Pay Express Services to access information about any account unless you have authority to do so by the person or company whose account you are accessing;
you will not provide any information to CWG or Fifth Third or in your use of the E-Pay Express Services, including account information unless you have the authority to communicate such information;
you will not use the E-Pay Express Services for any illegal or improper purposes;
you will not use: (i) any robot, spider, other automatic device to monitor or copy portions of the E-Pay Express home page or the E-Pay Express Services or the content contained therein, or (ii) any device, software, or routine to interfere or attempt to interfere with the proper working of the Payer Express home page or the E-Pay Express Services;
you will not download, reproduce, duplicate, copy or otherwise extract any portion of the E-Pay Express home page or the E-Pay Express Services for the purpose of sale or resale, or make other commercial use thereof, and
CWG or Fifth Third may send you electronic correspondence describing changes to the E-Pay Express Services and this Agreement.
Please Note: Colorado Form WC 50 requires the name of your Insurer to be included on the Form prior to posting at your location(s). You can locate the name of your Insurer here on your policy.
Agency of Oversite: Wyoming Department of Workforce Services Workers’ Compensation Division
Posting Notice: Certificate of Good Standing Required
Addional Posting Information: Any business conducting work in the State of Wyoming or hiring a Wyoming resident as an employee must register with the Division of Workers’ Compensation and Unemployment Insurance.
Agency of Oversite: Missouri Division of Workers Compensation 2
Posting Notice: Workplace Poster Required
Addional Posting Information: The forms are mandatory in both English and Spanish. The forms must be posted proximately to each other. The forms are also available in two sizes—poster and letter size.
Agency of Oversite: Michigan Workers Compensation Agency
Posting Notice: No Poster Required
Addional Posting Information: There is currently no requirement for the posting of a workers compensation insurance notice by the state of Michigan. But there are two posters that an employer may voluntarily post in the workplace.
Agency of Oversite: Iowa Division of Workers Compensation
Posting Notice: No Poster Required
Addional Posting Information: There is no posting notice requirement for employers that have secured workers compensation coverage or qualified as a selfinsurer. Only employers who have failed to secure coverage for the liabilities assumed under the Act must post a notice of the failure to insure.
