Drive TimesA NORTHLAND INSURANCE RISK CONTROL PUBLICATION ISSUE 1/2017

1 Visit northlandins.com today! | 2 Electronic logging device mandate is looming. Will you be ready? 2 Electronic logging device Q&A | 3 Riding in a truck? It’s time to buckle up! | 4 How does your safety program measure up? 5 Marijuana – legal in many states, but is prohibited by the Department of Transportation

Inside

Visit northlandins.com today!

From the home page, select “Services,” then “Risk Control.” Click on the “Truck” link to access our extensive collection of safety resources with easy-to-follow menu options featuring:

• Accident management

• Driver management

• Driver health and wellness

• Safe driving

• Safety management

• And more

Visit frequently for updates and to access our collection of safety articles, management guides, Department of Transportation (DOT) regulation guidance, links to important industry websites and more.

Safety and risk control is always an important topic. We encourage you to utilize these valuable, industry-leading resources to help you keep your drivers and company safe.

We have updated northlandins.com with a new and improved risk control site, featuring valuable resources to help you manage your fleet safely and reduce the risk of loss.

The deadline for most truck drivers to begin using electronic logging devices (ELDs) is approaching quickly. Beginning Dec. 18, all commercial vehicle drivers subject to the mandate must use compliant ELD devices. Considering how ELDs could impact your business, waiting until the last minute could be a costly mistake.

For starters, it could take extra time to research and select a device that meets your needs beyond ELD compliance. You’ll also need time to consider your options. Do you want to remotely monitor vehicle

location, fuel mileage and vehicle diagnostics? Do you want video monitoring to capture accidents and near misses? What about providing drivers with in-cab dispatch information and navigational help? These are just a few telematics device capabilities that can help improve fleet safety and efficiency.

How long will it take to fully integrate an ELD into your operation? Drivers and operations staff may need training and time to adapt.

Will ELDs require you to change routes and schedules? If so, your customers may need time to adapt.

Installation can take several weeks or months depending on your operation. Each ELD system must be installed and tested, and additional time may be needed if compatibility problems develop.

Electronic logging device mandate is looming. Will you be ready?

Q: Who must use ELDs?A: The ELD rule is a federal motor carrier safety rule, so it applies to all commercial vehicle drivers who operate in interstate commerce. The rule does not apply to:

• Drivers not required to use daily logs more than eight days in a 30-day period.

• Drive-away/tow-away drivers (transporting an empty vehicle for sale, lease or repair), provided that the vehicle driven is part of the shipment.

• Drivers of vehicles manufactured before model year 2000.

Many states are expected to adopt the ELD rule. Check with the agency in your state that regulates commercial vehicles to learn more.

Q: What are the device requirements?A: ELDs must automatically record the date; time; location; engine hours; vehicle miles; and identification information for the motor carrier, driver, and other authorized users. To accomplish this, the device must be capable of receiving data from the vehicle’s computer. The device display must show driver and vehicle information along with the standard 24-hour duty status grid. Roadside inspectors must be able to view the display without entering the vehicle or be provided a printout. The device must also be capable of transferring this data to roadside inspectors through a wireless web service, email, USB connection or Bluetooth technology.

Q: Do I still need to keep a paper logbook? A: ELDs are designed to record all information necessary to comply with record-of-duty-status requirements. However, drivers should still have a paper logbook available in case their ELD malfunctions.

Q: Must the ELD be attached to the truck? A: An ELD can be a removable mobile device, such as a smartphone or a tablet. However, it must be mounted in a fixed position visible to the driver.

Q: Are supporting documents still required? A: Under the ELD rule, supporting documents, such as shipping papers and expense receipts, are still required. However, no more than eight supporting documents are required per 24-hour period. The requirement to keep daily records of duty status and supporting documents for six months remains unchanged.

Q: What happens if an ELD malfunctions? A: Drivers must notify the motor carrier within 24 hours, and the malfunctioning ELD must be repaired or replaced within eight days. In the meantime, drivers must use a paper logbook to document their hours of service. They must also create a record of the previous seven days, if that record is not available from the ELD.

Q: Where can I get an ELD? A: Only devices that meet the technical standards of the ELD rule may be used. Manufacturers must self-certify that their devices meet this standard before they can be included in the list of ELDs approved by the Federal Motor Carrier Safety Administration (FMCSA). For a list of vendors providing certified, registered devices, go to the FMCSA website at https://3pdp.fmcsa.dot.gov/ELD/ELDList.aspx.

To learn more about these requirements and to access a copy of the ELD Final Rule, go to the FMCSA website at fmcsa.dot.gov/hours-service/elds/electronic-logging-devices.

Considering these time-consuming tasks, it’s best to get started now. A simple ELD device might help you meet the requirements of the upcoming rule. However, technology is playing an ever-increasing role in fleet management and safety. It might be good to consider what features, in addition to an ELD, could benefit your business, and if now is the time to make that investment.

BEGINNING DEC. 18,

all commercial vehicle drivers subject to the mandate must use compliant ELD devices.

2 Drive Times | Issue 1/2017

ELECTRONIC LOGGING DEVICE Q&A

5/26/17

1. OFF DUTY

2. SLEEPER BERTH

3. DRIVING

4. ON DUTY (not driving)

MIDNIGHT 1 2 3 4 5 6 7 8

Seat belt safety tips:

Wearing a seat belt makes sense. When you are driving, either short distances or on long trips, you should always wear your seat belt. If you have a passenger, he or she should buckle up as well. In case of a sudden stop or crash, a seat belt can help keep you and any passengers secured to the seat, helping prevent injury or death that may occur from you being thrown from your seat into the steering wheel, dashboard or windshield.

Wearing your seat belt is the law. The FMCSA regulations require all commercial vehicle drivers to use a seat belt. With this new rule, other occupants of the vehicle must also wear seat belts.

Seat belts prevent ejection from a vehicle in a crash.

Many people mistakenly believe it’s better to be thrown clear of the wreckage in the event of a crash, but this could not be further from the truth. When you are not wearing a seat belt, your chances of being killed in a crash are almost 25 times higher if you are thrown from a vehicle. Seat belts can prevent you from being thrown through the windshield, from being dragged and scraped along the ground, or from being crushed by your own truck or another vehicle.

Even the best drivers need to wear seat belts. While good drivers do not usually cause accidents, it is possible that during your driving career you could be involved in a crash caused by another driver, bad weather, mechanical failure or tire blowout. Wearing a seat belt can prevent injuries and fatalities by keeping you in your seat.

3 Drive Times | Issue 1/2017

Although seat belt use among commercial truck drivers has increased, passenger seat belt use continues to lag behind. About one-quarter of large truck passengers do not use seat belts.1 As a result, they are more likely to be injured or killed in a crash. In 2014, 253 large truck passengers were killed.2 For some of these passengers, wearing a seat belt could have made a life-saving difference.

Riding in a truck? It’s time to buckle up!It might surprise you to know that until recently the Federal Motor Carrier Safety Regulations (FMCSRs) did not address seat belt use by passengers. That has changed. A final rule published by the Federal Motor Carrier Safety Administration (FMCSA) on June 7, 2016, now requires all occupants of property-carrying commercial vehicles to use seat belts, if the vehicle is equipped. The rule was effective Aug. 8, 2016.

COMMERCIAL VEHICLE DRIVER AND OCCUPANT SAFETY BELT USAGE BY REGION

Source: Federal Motor Carrier Safety Administration, Commercial Vehicle Driving Tips

Source: Safety Belt Facts, Federal Motor Carrier Safety Administration, March 2014

WEST

MIDWEST

SOUTH

NORTHEAST

1Seat Belt Usage by Commercial Motor Vehicle Drivers (SBUCMVD) 2013 Survey, FMCSA, February 2014 2Large Truck and Bus Crash Facts, National Highway Traffic Safety Administration, April 2016

How does your safety program

measure up?

A safety program’s complexity might vary depending on the company’s size, but a safety program is appropriate for companies of all sizes. If you don’t have a formal safety program, now is a good time to start one. The topics listed above can help provide a framework for this process.

Confirm that everyone in your organization understands and is committed to all aspects of the program. Each person should know his or her role in making safety part of the company’s culture. Review the program periodically to keep it current and to help achieve the desired results: a reduction in losses and a safer, more efficient workplace.

DRIVER HIRING Are formal, written hiring standards in place to help ensure that safe, experienced and qualified drivers are hired? Does management review the motor vehicle records (MVRs) of all prospective drivers? Are they interviewed? Are applicants required to complete an employment application? Does management thoroughly review each applicant’s employment history and contact previous employers? Are prospective drivers given written and road tests to gauge their industry knowledge, ability to drive safely and skill at maneuvering large vehicles? Do hiring standards and procedures comply with applicable regulatory requirements?

COMPANY SAFETY POLICIES Have written safety policies been established to communicate expectations related to safety and compliance with regulations? Are these policies widely distributed throughout the company? Does management show its commitment by following these rules?

SAFETY RULES Are workplace safety rules documented and enforced? Some safety rules to consider include:• Safe vehicle operations (mobile device

use while driving, speeding, parking, cargo securement, etc.)

• Vehicle inspection and maintenance

• Compliance with safety regulations• Prohibition on drug and alcohol use• Accident reporting procedures

PERFORMANCE EVALUATIONS Are performance evaluations conducted periodically to review driver safety performance? Do these evaluations include reviewing the driver’s MVR, accident record and adherence to company safety rules? Many of today’s onboard safety monitoring systems can provide information about vehicle and driver performance that can help you identify and correct unsafe behaviors. Are corrective action procedures in place to address performance issues?

ACCIDENT RESPONSE AND INVESTIGATION Are accidents promptly investigated and reported? Are countermeasures developed to help prevent recurrences? Are vehicles equipped with accident reporting tools and emergency equipment? Are drivers instructed on accident response, investigation and reporting procedures, including taking accident scene photographs?

VEHICLE INSPECTION AND MAINTENANCE Are all vehicles systematically inspected and maintained? Are safeguards in place to help limit the potential for vehicles to be operated while in an unsafe mechanical condition? Are all vehicle repairs, inspections and maintenance documented?

Drive Times | Issue 1/2017 4

Most trucking company owners, managers and drivers understand the importance of customer service. They know their success depends on delivering exceptional service. Even though accidents and safety violations can threaten the customer service that is so important to a trucking company’s success, unfortunately, good safety management sometimes receives less consideration.

Why is a safety program important?

An effective safety program can help reduce the frequency and severity of accidents and other types of losses. The reduced operating costs that result can translate into improved profitability. In an industry where even minor accidents can cost thousands of dollars, controlling accidents is vital to a company’s success.

A strong safety program can provide other benefits too. It can help lead to higher employee satisfaction and reduced turnover. Controlling losses may improve your success at obtaining affordable insurance. You may also experience fewer problems with fines and penalties for failing to comply with regulatory requirements.

REGULATORY COMPLIANCE Are managers and drivers knowledgeable about applicable federal, state and local regulations? Have these requirements been incorporated into written company safety rules?

FMCSA

PERIODIC SAFETY TRAINING Do drivers receive periodic training on company safety rules, defensive driving, accident trends and Department of Transportation (DOT) requirements? Is this training documented?

ORIENTATION AND TRAINING Do new drivers receive training on company policies and procedures, safety rules, defensive driving, and applicable regulatory requirements? Do trainers have the experience and qualifications to effectively train new drivers?

At a minimum, most transportation company safety programs should include the following elements:

An effective safety program can help reduce the frequency and severity of accidents and other types of losses.

For a complimentary Fleet Safety Guide, visit our website at northlandins.com.

Since the recent presidential election, 28 states and Washington D.C. have comprehensive marijuana use laws. Eight of the 28 states and Washington, D.C. have legalized recreational use, while the remainder have legalized medical use.1 This means that nearly one-quarter of the U.S. population now lives in a place where marijuana use is legal in some way.2

With regulated marijuana sales in North America projected to total $6.9 billion in 2016, and increase to $21.6 billion by the year 2021,3 this issue is not likely to go away anytime soon. To put it into perspective, in Colorado alone there are 996 retail/medical marijuana storefronts4 compared with 322 Starbucks5 and 237 McDonald’s.6

The ongoing trend toward marijuana legalization can pose problems for trucking companies and professional drivers who are unaware that state legalization does not mean use or possession is allowed by the Department of Transportation (DOT).

According to the DOT, these new state laws have no impact on federal drug and alcohol testing regulations for commercial vehicle drivers. State and federal rules continue to require that all drivers who operate vehicles requiring a commercial driver’s license (CDL) be subject to DOT drug and alcohol testing rules.

The DOT Office of Drug and Alcohol Policy and Compliance has sent a clear message: marijuana is a Schedule I controlled substance, and the use of marijuana by commercial drivers is prohibited.7 Regardless of the circumstances, a driver who tests positive on a DOT drug test can be disqualified from driving a commercial vehicle.

Unlike alcohol, there is no standardized legal limit for marijuana. In most states, any amount of the substance can be grounds for a DUI charge, whether the driver is actually impaired or not. That means a driver who legally uses marijuana could be disqualified from driving if he or she later tests positive after a drug test. The initial effects of marijuana use generally wear off within several hours; however, the substance can remain in a person’s system for weeks and result in a positive drug test long after the initial use of the drug.

Each state has its own established criminal penalties associated with marijuana-related DUIs. For a first-time offense, court-assessed fines can be as high as $6,250, and some states have a mandatory jail sentence from 24 hours to two years, depending on the circumstances.8 If there are aggravating factors, such as having a minor in the vehicle, causing a traffic accident or refusing to submit to a chemical substance test, fines and penalties can be increased.

Other associated costs resulting from a conviction for driving while impaired can include attorney fees, jail costs, treatment programs and increased insurance costs. But for professional drivers, these costs are minor compared to the loss of employment and the end of a professional driving career.

Given the widespread legalization of marijuana, the potential confusion over rules for professional drivers and the serious consequences from positive drug tests, it’s a good time to review your drug and alcohol testing program. Here are some things to consider:

• Does your drug and alcohol testing program meet all state and federal requirements? Information about the DOT drug and alcohol testing rules is available on the DOT Office of Drug and Alcohol Policy and Compliance website at transportation.gov/odapc.

• Have you reviewed your program and policies with your drivers? Some drivers may not understand that marijuana use, while legal in some states, is prohibited by the DOT.

• Do managers understand the consequences and procedures that must be followed after a violation of drug and alcohol rules, even when the violation involves the use of marijuana in a state where it is legal? Failing to follow the regulations can jeopardize your company’s DOT safety rating and result in severe fines and penalties.

Marijuana – legal in many states, but is prohibited by the Department of Transportation

1National Conference of State Legislatures, ncsl.org2These States Just Legalized Marijuana, Time Magazine online, Nov. 10, 2016, accessed 3/10/17 3Legal Marijuana Sales Could Hit $6.9 Billion in 2016, Fortune Magazine online, Feb. 2016, accessed 3/10/174Medical and Retail Marijuana Facilities, Colorado Department of Revenue online, accessed 3/10/17

A driver who legally uses marijuana could be disqualified from driving if he or she later tests positive after a drug test.

5Starbucks Stores by State, StateMaster.com, accessed 3/10/176The Number of McDonald’s in all 50 States, 24/7 WallSt.com, accessed 4/17/177DOT “Medical Marijuana” Notice, U.S. Department of Transportation, Feb. 1, 20178Driving Under the Influence of Marijuana, Criminal Defense Lawyer

5 Drive Times | Issue 1/2017

The content of this publication is only for the informational use of the reader. Information contained herein is not intended as, nor does it constitute, legal or professional advice, nor is it an endorsement of any source cited or information provided. In no event will Northland, Travelers or any of their subsidiaries and affiliates be liable in contract or in tort to anyone who has access to this publication for the accuracy or completeness of the information relied upon in the preparation of this publication or for the completeness of any recommendations from cited sources. Readers should consult source articles for more detail. This publication does not amend, or otherwise affect, the provisions or coverages of any insurance policy or bond issued by Northland or Travelers, nor is it a representation that coverage does or does not exist for any particular claim or loss under any such policy or bond. Coverage depends on the facts and circumstances involved in the claim or loss, all applicable policy or bond provisions, and any applicable law.

Drive Times

A Northland Insurance Risk Control Publication | Issue 1/2017

Our goal is to save you time and money by helping you manage your fleet loss exposures. The following is a brief summary of the services and materials available to you as a Northland customer. For additional information, call our Risk Control department at 800.237.9334. Choose option 1, then dial ext. 10527.

Local Risk Control consultants. Our experienced staff is available to answer your questions about transportation safety best practices, regulatory topics and Northland’s risk control services.

Loss prevention and Department of Transportation (DOT) compliance materials. Access Northland’s wide selection of free safety management, regulatory compliance and driver safety training resources on our website, northlandins.com. From the Services tab, select Risk Control and click on the link to our Risk Control Customer Portal.

Claims services. Northland’s claim professionals and industry-leading claim response help get you back on the road faster. Our ability to respond quickly and effectively to claims is of primary importance. With more than 65 years of experience, you can trust Northland to handle your claims promptly and professionally.

Northland’s claim center is available to handle claim reporting 24 hours a day, seven days a week. Reporting a claim is easy.

Phone: 800.328.5972 (24/7)Fax: 866.248.4608Email: NCCC@northlandins.com

Northland Insurance risk control and claim services

YOUR SOURCE FOR SAFETY AND LOSS PREVENTION INFORMATION

Risk Control Services 385 Washington Street, SB03N St. Paul, MN 55102

Visit northlandins.com, Northland’s website, one of the industry’s most comprehensive resources for truck insurance and safety.

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