The Most Overlooked Risks in Transportation
Due to the nature of the business, transportation companies face a number of risks on a daily basis. We all understand that any time someone takes a car, truck, train or any other type of vehicle on the road or rails, there are certain dangers involved. Accidents can, and do, happen. And, thankfully, there are many regulations in place to help keep your drivers and your fleet safe. But there are a number of additional risk factors in play that many transportation business owners don’t think about – often until it’s too late.
Below is a list of five of the most overlooked risks in transportation.
- Cyber Attacks
It’s easy to forget about the behind-the-scenes dangers that exist for transportation companies. But the reality is that telematics systems – which are used for location tracking, status updates
andphysical asset management – create many potential access points for hackers to target, and that can lead to a serious breach of your network.
Cyber attackers have also begun to hack digital dashboards, which can wreak havoc on the welfare of the goods you transport. For example, a hacker may change the trailer temperate by shutting down cooling mechanisms while still showing the appropriate reading on the digital display – a major risk for food delivery trucks, in particular.
Trains are also highly susceptible to attacks due to their dependence on electronic sensors and network technology, both of which can be affected by hackers to disrupt your supply chain.
- Poor Infrastructure
Poor road and rail conditions can create all sorts of problems for your transportation business. Potholes and other hazards pose a physical risk to your vehicles and your goods, leaving you more likely to require frequent maintenance and repairs. Poor road conditions also tend to cause congestion and travel delays, which then drive up the costs associated with wasted time and fuel.
- Increasing Regulations
On-road regulations are increasing all the time, and failure to comply with them means that your company may be hit with some serious fees. The Hours of Service Regulation, which states that trucks must be equipped with electronic devices to track hours on the road in a day to help ensure their drivers get at least 10 hours of rest after an 11-hour drive, and the Food Safety Modernization Act, which requires truck drivers to ensure best practices for sanitation and food protection, are just two examples that can negatively impact your business if not properly followed.
- Worker Injuries
As mentioned above, accidents can – and do – happen. And, despite employers’ best efforts to keep their drivers safe, workers do occasionally get hurt on the job. If serious enough, the injuries sustained could cause you to lose one of your greatest assets: your employee. And it could quickly lead to lawsuits that leave your transportation business vulnerable to
- Car Accident Lawsuits
If one of your drivers gets into an accident with another car on the road, a lawsuit is likely to follow. Even with the advent of dash cams, which can help clear your drivers of any wrongdoing by providing a driver’s eye view of what happened during a crash, car accident lawsuits can be costly and may even hurt the reputation of your business.
Planning for these potential risks, and taking the steps necessary to safeguard your drivers, your fleet and your company as a whole, are vital to the security and well-being of your business.
For help determining the risk management solutions that are best suited for the needs of your transportation company, contact us today to schedule a consultation.