CLDA Final Mile Fridays with Brian Jungeberg with Brown & Brown Insurance
Insurance is one of the largest expenses for many final mile companies. So naturally, when renewal comes around, much of the conversation centers on one question: What is this going to cost us?
But the better question may be: What is our operation telling an insurance underwriter about our business?
The way a company hires and manages drivers, responds to safety issues, uses technology and handles growth all influence how an underwriter evaluates risk. Those same practices also say a lot about how well the business is being run.
That connection was at the center of a recent CLDA Final Mile Fridays conversation with Brian Jungeberg of Brown & Brown, who has spent more than 23 years working with final mile delivery companies on insurance and risk management.
The discussion went beyond policies and premiums to explore what carriers can do operationally to become stronger risks and, in the process, stronger businesses.
Here are some of the biggest takeaways for final mile carriers.
Safety Culture Goes Beyond the Safety Manual
Most transportation companies have safety policies, procedures and training. But having a safety program and building a safety culture aren’t necessarily the same thing.
The difference often shows up when following those policies requires a difficult decision.
Consider a productive, dependable driver who begins accumulating motor vehicle violations. Losing that driver may create an immediate operational challenge, but continuing to overlook unsafe behavior can create a much bigger risk.
A true safety culture means establishing standards and being willing to enforce them, even when it’s inconvenient.
For underwriters, driver records, training and safety procedures can provide insight into how seriously a company approaches risk. But documents only tell part of the story.
The strongest safety program is the one that’s actually practiced.
Technology Is a Tool, Not a Safety Strategy
Cameras, telematics, GPS and driver-monitoring systems have become increasingly common across transportation. But simply installing them doesn’t automatically make an operation safer or guarantee lower insurance costs.
What matters is what happens next.
If technology identifies speeding, distracted driving or another unsafe behavior, does someone review it? Is the driver coached? Is corrective action taken? Are recurring patterns addressed?
Jungeberg raised an important consideration: collecting safety information and repeatedly failing to act on it can potentially create additional exposure.
At the same time, these tools can be extremely valuable when used properly. Camera footage and telematics data can help carriers understand what happened during an incident and may even help demonstrate when a driver was operating safely.
The value isn’t simply in having the technology. It’s in what you do with the information it provides.
Growth Can Test More Than Your Capacity
Landing a major new customer is something to celebrate. But rapid growth can also expose weaknesses in an operation.
A new account may suddenly require more drivers, vehicles and routes. When the pressure is on to meet a customer’s expectations, it can become easier to compromise on hiring standards, training or safety processes.
From an underwriting perspective, rapid increases in drivers or vehicles naturally create questions. What caused the growth? How is the company supporting it? What additional safety and operational infrastructure has been added?
Jungeberg also pointed out an interesting distinction between growth from an existing customer and taking on entirely new business. New accounts can introduce unfamiliar routes, requirements and exposures.
For carriers pursuing growth, the question shouldn’t only be “Can we handle the additional volume?”
It should also be: “Can our people, systems and processes support it safely?”
And as your operation changes, your insurance broker should be part of the conversation. Major new accounts, fleet expansion or new service lines can change your risk profile. Those conversations shouldn’t necessarily wait until renewal.
Risk Management Can Be Part of Your Sales Story
One of the most valuable ideas from the conversation was that risk management doesn’t have to stay in the back office.
It can become a competitive advantage.
When a customer selects a final mile carrier, that customer is taking on risk, too. They want confidence that their freight will be handled properly, drivers are qualified, appropriate procedures are being followed and their transportation partner is prepared when something goes wrong.
That creates an opportunity for carriers.
Being able to explain your safety practices, training, compliance procedures, technology and insurance program can help demonstrate why your company is a stronger transportation partner.
The same operational discipline that gives an underwriter confidence can give a prospective customer confidence, too.
For carriers pursuing sophisticated customers or specialized verticals, risk management can become part of the value proposition rather than simply another cost of doing business.
One More Risk to Watch: Cyber
Not every major risk facing a final mile company happens on the road.
When asked what emerging risks transportation companies should be watching, Jungeberg pointed to cybersecurity, fraud and deception, particularly as criminals become more sophisticated in their use of technology and AI.
Today’s final mile companies rely on technology for dispatch, payments, customer communication, routing and driver management. That connectivity creates efficiency, but it also creates exposure.
For business owners accustomed to thinking about risk in terms of vehicles, drivers and cargo, cybersecurity increasingly deserves a place in the conversation as well.
Better Risk. Better Business.
Insurance premiums will always matter. But focusing only on the cost of coverage can cause carriers to miss the bigger picture.
Good hiring practices. Driver accountability. Training. Technology. Safety. Compliance.
These aren’t simply things an insurance underwriter wants to see. They’re characteristics of a well-run transportation company.
As Jungeberg emphasized during the conversation, safety culture wins.
When managing risk becomes part of how a company operates every day, the benefits can extend well beyond insurance. You can build a company that’s safer, stronger, better positioned to grow and more attractive to the customers you want to serve.
Better risk. Better business.
To learn more, contact Brian directly at b3@bbrown.com.
Watch the Full Conversation
Want to go deeper? Watch the full CLDA Final Mile Fridays conversation with Brian Jungeberg of Brown & Brown for more on driver safety, claims, independent contractors, insurance strategy, rapid growth and the emerging risks final mile carriers should be watching.
Watch the full conversation on YouTube
CLDA Final Mile Fridays brings together industry leaders and experts for practical conversations about the issues affecting final mile businesses. Follow CLDA for upcoming episodes and conversations designed to help move the final mile industry forward.
The information shared in this article and the accompanying Final Mile Fridays conversation is intended for general educational purposes and should not be considered legal or insurance advice. Companies should consult with their own insurance, legal and risk-management professionals regarding their specific operations.
