From the Front Lines: Commercial Auto

How did you get started at your agency?

I’ve been in the business for 35 years now. Almost 13 years ago, I started Priority Risk Management from scratch. We’re a family-owned agency—I have my two sons working for me here.

Why commercial auto?

It goes along with the commercial package or the business owner’s policies, so you write multiple lines when you write the commercial auto. And just about every business has an auto policy on it. I’m in a fast-growing suburb of Indianapolis, so there’s lots of business coming in.

Biggest commercial auto changes?

It’s much more difficult to find a qualified driver now because the economy is good and there’s high employment, especially here in Indiana. When you need to hire somebody, it’s like you’re trying to find the best of the worst out there. Many companies now in the trucking industry are having to train drivers because it’s difficult to find somebody to drive, so now you’ve got more inexperienced truckers out on the road.

Biggest commercial auto challenges?

There’s a lot more congestion on the road so there’s a lot more claims, as well as distracted driving—not just from cell phone use, but also because new vehicles have control panels on the dashboard. There’s a lot to distract you from driving. We’re seeing a lot more claims, which means the industry is not as profitable as it once was.

Future of commercial auto?

I haven’t seen much of this yet, but boy, we’re all reading about autonomous vehicles. The fact that people aren’t going to be driving cars much longer, the cars are going to be driving themselves—what kinds of claims is that going to bring in? How is commercial auto going to be written? What could be a big change in the auto market is who’s going to be writing that, because some of the insurance companies are going direct to the vehicle manufacturers.

Commercial auto advice for a fellow agent?

I would look for clients that are already doing some frontline underwriting. People who are screening their drivers, running the MVRs before they hire them, and checking them on a regular basis. Then they’re a better risk, which makes them more profitable for you and the insurance company.

Favorite commercial auto success story?

I had a customer whose employee got involved in a car accident when they reached down to pick up their cell phone. They drove somebody off the road, and unfortunately, the person was killed. It was a big claim, but my customer’s employee took solace in the fact that their employer took high limits of liability and had proper coverage. While paying the surviving spouse doesn’t bring back a loved one, at least it didn’t put a financial hardship on them. That’s why we do what we do—we are there in people’s darkest hours.

Will Jones is the IA assistant editor.