Dylan Zeitlin
Associate Vice President, Business Insurance
Every service call starts on the road. For HVAC, plumbing and electrical contractors, that makes commercial auto insurance one of the most expensive exposures in the business.
According to a 2025 Conning study, claim severity has increased 64% since 2015, driven in part by advanced vehicle parts, higher repair costs, and larger legal settlements.
The pressure isn’t limited to major crashes. Even a routine “bumper tap” between service calls can quickly become a multi-vehicle claim involving injuries, legal costs, and damaged equipment.
Employers can’t control traffic or other drivers. They can, however, control the practices that influence driver performance, claim defensibility, and carrier confidence.
Here are several strategies that may make a meaningful difference.
Start with driver selection, not driver correction
A claim shouldn’t be the event that starts a fleet safety conversation. A stronger approach is preventing poor driving behaviors from entering the fleet in the first place.
Although contractors invest heavily in hiring skilled technicians, driving qualifications don’t always receive the same level of scrutiny, even when employees spend hours on the road every day.
Strong fleet programs should create a consistent standard for who is allowed to operate company vehicles from the outset. That often includes:
- Motor vehicle record (MVR) reviews before hiring and at regular intervals
- Background screening aligned with company policies
- Drug and alcohol testing protocols
- Driver qualification standards documented across the organization
- Road tests or vehicle operation assessments when appropriate
Standardized screening helps reduce the likelihood of assigning company vehicles to drivers with known risk factors and creates a more defensible record of how driving decisions are made.
Use telematics to turn fleet data into action
One option contractors may want to consider is telematics. Modern telematics systems combine dash cameras, GPS tracking, and driver behavior monitoring to create visibility into what is happening on the road every day.
These tools can identify:
- Hard braking events
- Rapid acceleration
- Speeding patterns
- Distracted driving behaviors
- Unsafe following distances
- Vehicle location and usage trends
Telematics can provide more than accident documentation. It gives owners and managers data to spot patterns, coach drivers, and correct unsafe habits before they become claims.
According to a 2024 International Data Corporation (IDC) whitepaper, companies using telematics have reduced vehicle crashes by 29% on average and cut unsafe driving incidents by 51% within three months. IDC estimates those crash reductions save an average of $1,140 per vehicle each year.
Build a fleet safety culture drivers care about
Technology alone doesn’t improve driving performance. Employers also need clear expectations that drivers hear consistently and see reinforced in daily operations.
Contractors with stronger fleet safety programs make driving performance a regular management conversation through driver meetings, coaching sessions, and performance reviews. Instead of vague reminders to “drive safely,” they focus on measurable behaviors, such as speeding, hard braking, phone use, following distance, and preventable incidents.
Some companies go a step further by recognizing safe driving behavior through:
- Driver-of-the-month programs tied to clean records or improved scores
- Recognition programs that highlight safe driving habits in team meetings
- Performance incentives for drivers without speeding tickets or repeated alerts
- Advancement opportunities for employees who demonstrate responsibility on the road
When drivers see that safe performance is measured, noticed, and rewarded, fleet safety becomes part of how the business operates, not just a policy they signed during onboarding.
Match coverage to what’s actually on the road
Fleet safety helps reduce accidents, but coverage structure determines how well a contractor can recover when a loss still happens.
For home service contractors, the vehicle itself is only part of the exposure. Service vans can carry thousands of dollars in tools, inventory, parts, and specialized equipment needed to keep jobs moving. After an accident, replacing what was inside the vehicle can create as much financial pressure as repairing the vehicle itself.
Coverage should reflect the full value of what is on the road each day, not just the vehicle listed on the schedule.
Review limits before a claim tests them
Underinsured fleets are another costly blind spot. Liability limits that made sense years ago may no longer reflect the size of today’s claim environment.
Rising medical costs, more expensive vehicles, and litigation trends have changed what a commercial auto loss can become. Even a routine accident can create exposure that exceeds what a contractor expected.
Commercial auto limits should be reviewed alongside umbrella, excess liability and other business insurance coverages to ensure protection reflects the size of today’s potential losses.
Create a commercial auto program carriers can trust
Don’t wait for a claim to reveal what is happening behind the wheel. Connect with a Marsh McLennan Agency Arizona representative to implement telematics, strengthen driver safety programs and show carriers your fleet is being managed with control, visibility and accountability.
