Accidents happen quickly and without notice. Therefore, we have listed some important tips to remember if you are faced with a motor vehicle incident. Use this kit as a tool to aid you in making a claim in the event of a motor vehicle accident.&nbsp;
To use a digital version of this tool, click the "Download Tool" button above. Once the PDF file is downloaded and opened in Adobe Acrobat Reader, click the "Fill &amp; Sign" button in the right column to start digitally filling the PDF file.

Automobile Accident Reporting Kit

A new driver (Sandy) has just started work at a medium sized transportation company. Just two weeks in, she&rsquo;s overwhelmed by the new systems and routes that she needs to learn and, after a momentary lapse in concentration, Sandy collides with a stationery vehicle. Although she&rsquo;s not seriously harmed, she&rsquo;s shaken and will be kept off the road for a couple of weeks. Fortunately, Sandy will fully recover and there were no other injuries; the transportation truck on the other hand is badly damaged and the company is at risk of not being able to fulfill some critical service commitments.
Sandy&rsquo;s employer faces a slew of costs associated with the collision and finding a replacement driver to cover her routes while she&rsquo;s off recuperating. The insurance policy will cover some of the loss but without a doubt the company will be out of pocket. This is an unfortunate sequence of events to be suffered by a medium-sized transportation company.
It would be easy to conclude that this type of loss is just the cost of doing business for a transportation company. But it doesn&rsquo;t have to be. Sandy&rsquo;s employer could have reduced the potential of an accident happening by providing Sandy with more training, but they were short-sighted and eager to get her out on the road as soon as possible. Rather than spending time on new driver orientation training and activities, the management team wanted her clocking up the miles on the road. They didn&rsquo;t appreciate the importance of investing in their drivers to avoid this type of early employment accident.
&ldquo;Fleets with drivers that have the right training, tools, equipment, attitude and employer support positively impact their own on road performance. Automobile insurance pricing favors fleets that invest in these areas.&rdquo;
Experienced fleet managers know that their insurance policy, no matter how comprehensive, is a secondary line of defence. Being proactive and mitigating risks before they happen is how you build a resilient business. If Sandy&rsquo;s employer had taken such an approach, she likely would still be on the road, the vehicle would be undamaged and the company wouldn&rsquo;t be facing a potentially costly loss. In the transportation industry, we know it&rsquo;s so important to think ahead because you&rsquo;re dealing with situations like Sandy&rsquo;s every day.
&ldquo;One of the most effective measures is investing in your drivers,&rdquo; explains Boyd Cooley, Commercial Underwriting Manager at Sovereign Insurance. &ldquo;Carefully screening new driver hires is also critical. You want to have the right person with the right attitude behind the wheel.&rdquo;
Training drivers to operate vehicles as safely as possible - and providing guidance on defensive driving - is so important. Drivers may have a clean record with no prior collisions, but it&rsquo;s vital they receive ongoing training and education to enable them to perform at a higher standard.
&ldquo;A better prepared fleet operator is a better insurance risk,&rdquo; says Cooley. &ldquo;Fleets with drivers that have the right training, tools, equipment, attitude and employer support positively impact their own on road performance. Automobile insurance pricing favors fleets that invest in these areas.&rdquo;
The benefits for an organization that adopts a proactive approach to risk mitigation are clear. From improved driver morale and insurance savings to more miles being covered due to fewer accidents, forwarding thinking companies are better positioned to attract and retain good drivers and at the same time boost organizational profits.
For companies that don&rsquo;t invest their time in implementing risk mitigation best practices, the consequences are wide ranging. &ldquo;The risks are serious; from the safety of your employees and the public at large, to financial business risk threatening the viability of your operation,&rdquo; says Cooley. &ldquo;Fleets that don&rsquo;t invest in risk management may find insurance coverage prohibitively expensive or even unavailable. Fleet operators have a lot at stake and need to be proactively managing their risk. At Sovereign, our Fleet Underwriting and Risk Assessment Specialists are here to help.&rdquo;
Here are some helpful tips for creating a culture that promotes safe driving: 
<ul>
<li>Educate drivers on safe and defensive driving techniques from day one</li>
<li>Develop training materials on fatigue management</li>
<li>Create a buddy system in which newer drivers have an experienced person to turn to for advice</li>
<li>Place organizational emphasis on safety rather than hitting targets</li>
<li>Don&rsquo;t retain drivers who break the rules</li>
<li>Foster a culture of continuous learning and pride of workmanship</li>
</ul>
&nbsp;
We can work with your Broker to help you strengthen your current Fleet Safety Program. Contact your broker to learn more.

The Importance of investing in your drivers

Telematics is changing the game for the transportation industry. It isn&rsquo;t exactly a new concept, but the latest wave of telematics technology is increasing safety and boosting efficiency on a whole new level. Competitive pressures are driving transportation operations to cut business costs and improve both productivity and efficiency, and telematics plays a central role in making that happen. Savvy transportation firms are starting to see spending on telematics for exactly what it is: an investment in the organization that has the potential to create a tangible return on investment over time.
<h4>What is telematics? </h4>
Telematics is a technology that uses global navigation satellite systems and onboard diagnostics to track, collect and store information about a vehicle and its driver. Basically, it&rsquo;s a hi-tech computer that records every single move the vehicle makes from the time the driver turns on the engine.
Telematics sensors are usually housed in a black box, cell phone, smart tag or dongle. They collect an important array of qualitative and quantitative driver behaviour data, such as driving time, idle time, distance, acceleration, braking and cornering. That information is then analyzed alongside contextual data such as weather and road type.
If someone gets into an accident, the telematics device can determine in real-time where the car was damaged, the extent of the damage, the probability of bodily injury, and what other car was involved.
<h4>How can telematics help your business? </h4>
Utilizing telematics has many benefits for any fleet manager. Having access to real-time data on their drivers and vehicles can help a company boost fuel efficiency, cut maintenance costs and stop bad driver behaviours. It can save a company time and money and help improve the physical and mental health of its most important asset: the drivers.
The data that telematics devices collect can be analyzed by organizational leaders to make important strategic decisions. It enables management to optimize their business by selecting new routes, reducing their risks and assessing whether or not a certain driver needs to receive some updated training.
Telematics is also driving the adoption of Internet of Things (IoT) and improving the coherence in conversations between transportation companies and their insurers.
<h4>Telematics and your insurance policy </h4>
In addition to giving management a deeper insight into their drivers and freight, telematics can provide insurers with rich information so they can better assess a company&rsquo;s transportation risks. The information can in turn help transportation companies demonstrate that they&rsquo;re taking measures to improve safety and cut out things like driver errors caused by fatigue.
The way an insurer &lsquo;scores&rsquo; a transportation company&rsquo;s risk (and then prices the policy) is influenced by the telematics tool&rsquo;s data collection capabilities and more importantly, how the company uses the data to improve the safety of their fleet and mitigate risks.
Underwriting and pricing of a fleet considers all safety and risk management systems in place. A fleet with robust telematics &ndash; that uses the data regularly and effectively &ndash; would be considered as having implemented positive risk mitigation and risk management measures, which could be reflected in the pricing process.
There are various types of telematics-based solutions on the market and differences can dictate how much information is collected, which could in turn influence how much a transportation company could save on their insurance premium. The way an insurer &lsquo;scores&rsquo; a transportation company&rsquo;s risk (and then prices the policy) is influenced by the telematics tool&rsquo;s data collection capabilities and more importantly, how the company uses the data to improve the safety of their fleet and mitigate risks.
Certain simple devices only collect miles driven, while more advanced solutions can track acceleration, braking, cornering and driving context to support more complex behavioural models. Insurers are keen to get a closer understanding of the behaviours that correlate with risk of loss, and to what extent they can benefit from telematics.
Telematics sensors generally track measurable variables, such as surge, pitch, yaw, and roll, to identify when a crash has occurred. Depending on the device and the algorithms it uses, the accuracy of crash detection can vary significantly. By using data directly from the vehicle with a dongle or smart tag, insurers can gain insights into not only how the crash occurred, but also the severity of the impact and the path or trajectory of the vehicle just prior to the accident.
<h4>Telematics Opportunities and Benefits </h4>
Making the upfront investment in a new technology can be daunting for company owners. Taking a step into modernity can sometimes feel risky, but with a technology like telematics it&rsquo;s difficult to see how a transportation company will not benefit. Improved safety, reduced maintenance costs, theft deterrence, richer data collection and in some cases a lower insurance premium &ndash; and that&rsquo;s just for starters.
Investing in a technology like telematics has the potential to boost driver morale and change the image that other industry participants have of your firm. Attracting the best talent is always one of the biggest challenges and introducing telematics to your fleet lets drivers know that your company is driver-focused; that your company really cares.

How telematics is transforming transportation

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As accountability in corporate leadership continues to broaden across a wider range of issues, legal challenges remain a significant concern for businesses. In Sovereign Insurance&rsquo;s annual Q&amp;A series, <a href="https://www.sovereigninsurance.ca/our-team/toronto/eduard-lecker" title="" target="">Eduard Lecker</a>, Senior Underwriter, &nbsp;Management Liability, shares his insights on key loss trends and exposures in this area in 2024 and what organizations should be aware of in 2025 as new risks take shape.&nbsp;
What were the key loss trends and exposures you saw in 2024?
The key loss trend in 2024 remained consistent with the previous year: an increasing number of claims focused on environmental, social and governance (ESG).1 These legal actions&mdash;which can be initiated by consumers, shareholders and investors, and environmental advocacy groups&mdash;are typically centred on allegations related to greenwashing and climate change. For example, a company might make misleading claims about its environmental strategies or fail to disclose climate-related risks, which can expose them to significant legal and financial risks.&nbsp;
What are some emerging risks to keep an eye out for in 2025?&nbsp;
One emerging risk is claims related to artificial intelligence (AI). As more companies use AI, there&rsquo;s a growing risk of misrepresentation about what these systems can do. Some tech companies may overstate AI&rsquo;s capabilities. Companies using AI for hiring, financial reporting, or ESG decision-making are especially vulnerable, as they could face legal action if the technology doesn&rsquo;t live up to expectations. For example, AI systems that filter job applicants can have unintentional biases, and companies may claim that AI can replace human decision-making&mdash;when, in reality, there&rsquo;s still a lot of human oversight involved. If AI tools generate inaccurate reports&mdash;like pulling up the wrong numbers&mdash;and those figures influence critical decision-making, legal claims can arise. Similarly, when companies use AI to track their environmental impact, inaccurate data could also expose them to risk.
There are a couple of emerging issues in the U.S. to keep an eye on, as developments there often follow suit in Canada. Under the new U.S. &nbsp;leadership, there are rollbacks in climate policies and diversity, equity and inclusion initiatives. For example, the U.S. has pulled out of the Paris climate agreement, which could prompt companies to scale back their own sustainability effects. This could expose them to legal challenges from groups that feel misled by these changes.&nbsp;
With the current trade war between the U.S. and Canada, there&rsquo;s growing sentiment around &lsquo;Buy Canadian,&rdquo; but labelling what qualifies as Canadian-made is complicated. For instance, a product might contain American apples processed in Canada but is labelled as being made in Canada. If a product doesn&rsquo;t meet legal definitions of terms like &lsquo;Product of Canada&rsquo; or &lsquo;Made in Canada,&rsquo; this could lead to claims. &nbsp; For example, if incorrect labels lead to misrepresentation of a product or its origin, it could lead to claims of misrepresentation or breach of contract.&nbsp;
We&rsquo;re also keeping an eye on U.S. cases in which directors and officers are facing personal liability in lawsuits. Holding directors personally liable for their decisions could lead to more legal challenges and impact decision-making at the top level. &nbsp;
How can organizations mitigate these risks?&nbsp;
For AI, it really comes down to transparency. Don&rsquo;t overstate, misrepresent, or overpromise what AI can do, and understand the legal consequences of any claims you make. It&rsquo;s similar to how companies should approach environmental strategies&mdash;be transparent about your actions and results. Like the saying goes, &lsquo;understate, overperform.&rsquo;
For the developments that we&rsquo;re watching in the U.S., it&rsquo;s difficult to say how to mitigate against them because there are still a lot of unknowns. When it comes to labelling Canadian products, it&rsquo;s important to be aware of the legal requirements. Transparency is key here, too&mdash;if there&rsquo;s any uncertainty, you can direct customers to your website where you outline your process, which some companies are starting to do. If you&rsquo;re not misrepresenting your actions, you&rsquo;re far less likely to face legal issues.&nbsp;
Sources 1 Jan. 31, 2025: Moodys, &ldquo;D&amp;O series &ndash; Evolving risks in the boardroom: A new era of D&amp;O liability &ndash; Part 3&rdquo; 1 Aug. 22, 2024: McCarthy Tetrault &ldquo;Greenwashing and AI Washing: Emerging Trends in D&amp;O Claims Across North America&rdquo; 1 Oct. 22, 2024: &ldquo;The Insurer: Greenhushing &ndash; An emerging D&amp;O liability?&rdquo;

Loss trends and emerging risks in 2025: Management liability 

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As businesses continue to rely on essential machinery and equipment, the risk of damage and breakdowns remains a significant concern. These incidents can disrupt operations, lead to costly repairs and result in extended downtime. &nbsp; As part of our annual Q&amp;A series, <a href="https://www.sovereigninsurance.ca/our-team/calgary/razvan-ionescu">Razvan Ionescu</a>, Manager, Equipment Breakdown Underwriting, Large Accounts &amp; Operations at Sovereign Insurance, shares insights into key loss trends from 2024 and emerging risks that organizations should be aware of in 2025.&nbsp; What were the key loss trends and exposures you saw in 2024? If we were to look for trends in the equipment breakdown insurance industry, the most notable phases would be the heating season and the cooling season. In colder months when heating systems are activated, for example, boilers that are used for heating buildings might experience breakdowns. This happens because they haven&rsquo;t been used for an extended period and when they&rsquo;re restarted, can fail due to improper shutdowns or lack of maintenance during the off-season. Similarly, with cooling systems, a lack of ongoing use and maintenance can lead to mechanical failures. In addition to seasonal concerns, we continue to see typical breakdowns of production machinery, transformers, and other equipment that businesses rely on day in and day out. This can be caused by issues like aging equipment, wear and tear, and lack of preventative maintenance.&nbsp; What are some emerging risks to keep an eye out for in 2025? One emerging risk I&rsquo;ve seen is a shift from traditional generators to electric or lithium-ion batteries as backup power sources or to reduce the on-peak service use. While generators have been in use for a long time, some businesses are turning to electric batteries. This shift brings new risks, especially when it comes to maintenance and exposure. With traditional generators, you typically need a mechanical specialist on-site to keep things running smoothly. But with electric batteries, the high-capacity maintenance is usually handled by the OEM (original equipment manufacturer), who monitors the battery&rsquo;s performance in various ways, for instance, through remote monitoring. So, the whole approach to upkeep is different. A big concern here is fire risks. Batteries are prone to something called thermal runaway, which is a chemical reaction inside the battery that causes it to overheat and potentially catch fire. This can happen without the presence of oxygen, which makes it more dangerous than other types of fires. If a thermal runaway event happens, it could damage the entire battery system, which might cost a company hundreds of thousands to replace. And of course, there are significant human safety risks with any type of fire. In contrast, if something in a backup generator breaks down, it&rsquo;s typically a mechanical issue that can be fixed &ndash; similar to how you would repair a car. How can organizations mitigate these risks? To keep machinery and equipment running smoothly and safely, the best approach is to follow the OEM recommendations. For example, if the OEM advises performing thermal scanning on batteries on a regular basis, it&rsquo;s important to stick to that schedule. There&rsquo;s a well-known saying: &ldquo;If you don&rsquo;t schedule maintenance, your equipment will schedule it for you.&rdquo; By regularly scheduling maintenance, you can ensure it&rsquo;s completed on time and reduce the chances of delays in sourcing spare parts. When it comes to batteries, there are also specific best practices to follow around proper use, storage, transportation, and disposal. Organizations should familiarize themselves with these guidelines to minimize risks. For any type of equipment, preventative maintenance is essential. Although insurance policies are designed to cover profit losses during downtime, the key is to maintain uninterrupted service to customers.

Loss trends and emerging risks in 2025: Equipment breakdown

From distracted driving on busy highways to the explosive rise of quick e-commerce deliveries on city streets, the landscape of risk is rapidly shifting for the transportation sector. As part of Sovereign&rsquo;s 2025 Q&amp;A series, Kevin Dutchak, Senior Risk Specialist, Commercial Auto, provides insights into the key loss trends of 2024 and offers practical advice on how businesses can mitigate risks to protect their operations this year and beyond.
<h4>What were the loss trends and key exposures you saw in 2024?</h4>
Distracted driving is still a big issue and it&rsquo;s becoming even more significant with the growing use of technology in the industry. Technology can be great, but it can also be distracting. For example, some drivers try to map out routes on the fly, and in the e-commerce delivery space, drivers are constantly looking at addresses along residential streets. These kinds of distractions may lead to a lot of loss incidents.
Additionally, traffic seems to get busier all the time. During rush hour and with ongoing construction, it&rsquo;s like that old video game, Frogger, with drivers switching lanes back and forth, speeding, suddenly cutting in front of other drivers, and trying to get ahead of everyone. Statistics show that road travel continues to be the riskiest form of transportation, from property loss and minor fender benders to serious injuries and fatalities. When you add distracted driving and traffic congestion into the mix, it can increase the risk significantly.
Driver controls are another ongoing issue. For example, there are cases where drivers took short cuts to try to save time. But that winding two-lane highway with limited passing lanes, for instance, can put you more at risk, especially in winter conditions.
<h4>What emerging risks should businesses be aware of in 2025?</h4>
Climate change and severe weather events are becoming more of an issue for the transportation sector. We&rsquo;re seeing more frequent storms and extreme temperatures, which can cause delays and put drivers in unsafe situations.
While cybercrime is becoming more of a risk in many industries, I don&rsquo;t see much of that in trucking yet. But as more companies integrate artificial intelligence into their operations, they should ask what they&rsquo;re doing to protect themselves so people can&rsquo;t hack into that and use it to their advantage.
<h4>How can organizations effectively mitigate these risks?</h4>
When it comes to distracted driving, the key to mitigation is the constant reminder that driving is your job 100% of the time. You can&rsquo;t afford to compartmentalize your thinking&mdash;you have to concentrate on the road because it&rsquo;s such a fluid situation.
Sound defensive driving practices are also critical. I&rsquo;m surprised at the number of fleets that don&rsquo;t provide that training, assuming that because their drivers have a licence, they don&rsquo;t need it. But despite our best efforts, we can all become complacent, distracted and forgetful. So, companies need to get the focus back on training. It&rsquo;s an investment in your drivers that can pay dividends.
In terms of driver controls, trip management programs can mitigate risks. Managers should have discussions with drivers to outline expectations: Here is when we expect you to be on the road, this is the route we expect you to take, here&rsquo;s when we expect you to stop. When there is an interruption to the plan due to situations such as poor road and weather conditions, traffic delays on route and driver fatigue, protocols should be in place for drivers to communicate with dispatch and operations staff to keep them advised, which in turn can be communicated to their clients. The safety of drivers and other road users is always the top priority. Telematics can also be used to monitor drivers&rsquo; routes and ensure drivers are following the proper procedures, such as speed limits and safety protocols.
If a driver does have a significant loss event, it&rsquo;s critical for companies to take effective corrective action, such as retraining or a driver interview. Often, a lack of corrective action can lead to further and more significant losses.
For weather events, fleet operations should focus on forecasting models, if they aren&rsquo;t doing so already. When severe weather conditions are imminent, companies should consider shutting down operations in the affected areas; all drivers should find the first safe place to park, advise dispatch of their status and stay in place until the shutdown order is lifted.

Automobile Accident Reporting Kit

Automobile Accident Reporting Kit

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