How to Slash Truck Physical Damage Claim Resolution Time by 50% or More
How to Slash Truck Physical Damage Claim Resolution Time by 50% or More
Posted on: July 18, 2024In the transportation industry, time is money. When fleet operators or even single unit operators have to file Physical Damage claims, they don’t just suffer losses associated with that physical damage – they also suffer losses stemming from downtime. Traditional claims processes and standard coverage limitations cause substantial additional non-covered costs. TPA desktop claims handling minimizes these losses while helping insurance carriers save money.
Understanding the Insured’s Perspective
In a loss situation, the insured has one primary objective: Get the truck or its replacement back on the road as quickly as possible. If carriers want to elevate policyholder satisfaction and customer retention rates, shortening claims cycles is an effective way to do so. Unfortunately, traditional adjusting models stand in the way of this goal.
Challenge #1: Trucking Physical Damage Claims Often Take Too Long to Resolve
Imagine a truck that is transporting goods for a client. The truck catches fire, which destroys the truck and it is a clear Total Loss.
In the traditional adjustment model, an IA or appraiser will be appointed to attend the loss, review the damages, obtain relevant documentation and provide an estimate of the damages.
In the meantime, the transportation company is out of a truck. For small companies that only have one or two trucks to begin with, this loss of income may be financially devastating. The lack of coverage for downtime means many small transportation companies may end up struggling in the aftermath of a claim.
While it is waiting to resolve the claim and get the truck back on the road, the transportation company loses out on income. Unfortunately, Surplus Lines Trucking Physical Damage policies don’t typically include coverage for downtime.
Solving Challenges with A Modern Approach to Insurance Claims
Ten years ago, many of us believed that we had to attend meetings, job interviews and doctor’s appointments in-person. Now, we know that we can operate much more efficiently by engaging in some of these activities remotely.
The same concept applies to adjusting Trucking Physical Damage claims. With all the modern technologies available, why is the industry continuing to send field adjusters to manage tasks that can effectively be handled remotely? An in-person process can double the time involved, creating more downtime, delays and dissatisfaction for insureds.
A more modern, desktop adjusting process can accelerate the claim cycle, enabling trucks to get back on the road as soon as possible. Consider the many advantages:
• Leverage a more experienced team. In-house desk adjusters have typically already built successful careers with countless hours in the field. They are highly experienced and have extensive knowledge of damage types and repair costs.
• Start work immediately with no travel involved. Desktop claims handling enables progress to start immediately instead of waiting for someone to travel to inspect the damaged unit.
• Get the same level of documentation using phone video. Desktop adjusters can coach insureds, repair facilities or even tow yards to use their mobile phones to obtain the needed video documentation and they can conduct interviews and deploy service technicians remotely.
• Send payments digitally. All parties can be paid digitally, slashing time-to-resolution.
Combining these factors eliminates unnecessary field adjusting delays, easily shaving off two weeks of downtime and minimizing loss of income for the insured.
Everyone Wins
To see why desktop claims adjusting makes sense, consider the case of a claim that involved a truck stuck in the bottom of a ravine in Wyoming. The nearest field adjuster was about 300 miles away. Sending in a field adjuster would have required an extensive drive or even an airline ticket, a rental car and a hotel room, plus assistance with climbing in and out of a ravine.
In the traditional model, a typical claim cycle is 30 to 45 days. With desktop claims handling, claims can typically be resolved in 7 to 14 days.
With faster claim resolution, insureds clearly come out ahead. However, insurance carriers also benefit. When carriers reduce time-to-close, they have fewer complaints, which means fewer lost customers and fewer lawsuits. Plus, the insurer saves money, thanks to reduced storage times and the elimination of field adjuster expenses.
Take Desk Adjusting for a Test Drive
Vanguard delivers unique claims solutions and excellent service. Our experienced in-house team proficiently and quickly manages desktop claims – reducing Physical Damage claims cycle times, cutting costs, and helping insureds get back on the road. If you haven’t yet experienced the advantages of desktop adjusting done right, we encourage you to test drive our services.
– Duncan Wood