In the transportation industry, maintaining a strong safety record contributes to your operational success and financial stability. One key metric that impacts your insurance premiums and overall reputation is your Compliance, Safety, and Accountability (CSA) score.
Many smaller and mid-sized transportation companies — motor carriers — are unaware that these scores can directly affect their business. Learn how to best prepare for your next evaluation and protect your bottom line.
What is a CSA score?
CSA’s “scores” are an assigned ranking that indicate the level of a motor carrier’s operational safety. The data comes from a combination of the Federal Motor Carrier Safety Administration’s (FMCSA) Safety Measurement System (SMS) and Safety Fitness Determinations.
The SMS incorporates a motor carrier’s roadside inspections, crash reports, and prior investigation results, and develops a safety performance measurement — a percentile — which is converted to a CSA score (ranking) between 0 and 100. The assigned measurements and score show a direct correlation to a carrier’s compliance with federal safety regulations and their safety management processes. The higher the score, the more significant the risk.
How are SMS measurements calculated?
SMS is divided into seven safety topics known as the behavior analysis and safety improvement categories (BASICs):
- Unsafe driving
- Crash indicator
- Hours-of-service compliance
- Vehicle maintenance
- Controlled substances/alcohol
- Hazardous materials compliance
- Driver fitness
The measurements are calculated using a complex algorithm that considers on-road performance and investigation results for the following factors:
- Severity and frequency of violations found during inspections and investigations
- Number, severity, and recency of crashes involving your company's vehicles
- Size of your fleet and the number of miles driven
Why do smaller and mid-sized companies struggle?
Smaller and mid-sized trucking companies often need help managing their CSA scores due to several factors:
- Lack of resources: Smaller companies often have restricted budgets and staff, lacking dedicated safety personnel with the expertise to interpret SMS data or develop safety programs.
- Limited information access: Insurance brokers may prioritize larger fleets, leaving smaller companies with less guidance on navigating the Safety Measurement System.
- Complexity: The SMS can be challenging to understand, especially for those without a background in safety regulations. This complexity can lead to confusion and misinterpretations, making it harder for smaller companies to pinpoint areas for improvement.
- Reactive approach: Smaller companies often address safety issues only after they have resulted in violations or accidents. This can lead to a cycle of negative scores and increased insurance premiums. Consequently, allocating resources to proactive safety measures becomes even more challenging.
- Lack of technology adoption: Smaller companies may be slower to adopt new technologies that can help improve their measurements and CSA scores. This can be due to budget constraints, lack of awareness, or concerns about the learning curve associated with new systems. However, technology can be a powerful tool for identifying and addressing safety risks. Failing to leverage it can put smaller companies at a further disadvantage. Here are some solutions to consider:
- Electronic logging devices (ELDs): ELDs automatically monitor hours-of-service (HOS) compliance, helping to reduce violations and improve your score.
- Vehicle maintenance software: This can track preventive maintenance schedules, vehicle health, and repairs.
- Telematics: These systems oversee driver behavior, such as speeding, hard braking, and lane departures. You can identify areas for improvement and reduce unsafe driving.
- Dashcams: Video footage can provide valuable evidence in case of accidents, helping to exonerate your drivers and protect your company from liability.
Knowledge is the first step towards improving your Safety Measurement and CSA scores, and ensuring a safer, more profitable operation.
Impact of poor CSA scores
Insurance carriers use a few different metrics when determining pricing and program eligibility. Before looking at your loss runs and drivers, insurance carriers review CSA scores. If you have alerts, the most competitive insurance companies are likely to decline to quote.
Having a good accident record is not enough anymore. If you have bad CSA scores but good losses, insurance carriers will assume you’ve had a few lucky years; they won’t view you as a skilled operator. If you already have insurance, you could face:
- Higher insurance premiums: A poor CSA score directly correlates to elevated insurance premiums, as insurers perceive higher risk.
- Larger deductibles: To protect against this risk, insurers may impose increased deductibles, resulting in greater out-of-pocket expenses in the event of a claim.
- Stricter underwriting requirements: Insurers may impose more rigorous underwriting standards, requiring additional documentation or proof of safety improvements.
- Increased monitoring and audits: Underwriters may request more audits and monitoring, which can lead to additional administrative burdens and costs.
- Greater risk of non-renewal: Persistently poor scores can result in non-renewal of insurance policies.
Other considerations:
- Potential legal issues: High CSA scores indicate unresolved safety issues that could lead to increased legal scrutiny, civil penalties, suspension or revocation of your company’s operating authority, or imprisonment (in the case of egregious or willful non-compliance).
- Enforcement contact: FMCSA and state partners identify potential high-risk motor carriers, based on the carrier’s performance measurements. Higher measures can result in safety interventions and increased roadside inspections.
- Reputation: Motor carriers with poor scores, or a less-than-satisfactory rating, may find that some brokers and shippers will no longer allow access to loads or may encounter adjustments in their pay structure due to the perceived greater risk.
The difference between good CSA ratings and alerts could be a few thousand dollars per truck per year on your insurance costs. With the trucking industry averaging single-digit profit margins, this could be a make-or-break difference for your company. Fostering a strong safety culture protects your drivers, the communities you serve, and your bottom line.
How to maintain positive SMS measures and a more favorable CSA score
Implementing technology is just the beginning. Explore these other proactive measures to help improve your SMS and overall safety performance:
- Regularly review your SMS: Stay informed about your company's performance and identify areas for improvement.
- Conduct thorough pre- and post-trip inspections: Impress upon the drivers the importance of ensuring that your vehicles are in good working order before they hit the road.
- Develop a system of preventive maintenance: For compliant, safe, and efficient fleet operations, include a schedule for periodic maintenance, inspection, and recordkeeping.
- Invest in driver training: Provide comprehensive training on safety regulations, defensive driving techniques, safe driving, and crash avoidance.
- Develop a robust safety culture: Encourage your drivers to prioritize safety and report any issues promptly.
- Consult with safety experts: Seek professional guidance to review and assist in the development and implementation of effective safety programs.
Turn knowledge into action
Take charge of your safety performance by understanding the factors influencing your score. Periodically review your safety management processes to identify and correct any breakdowns and potential safety problems before they become larger issues or crashes occur. A commitment to safety isn't just a regulatory requirement; it's a smart business strategy.
Want to learn more?
Connect with the Risk Strategies Transportation Team at transportation@risk‐strategies.com.
About the authors
Robert Haley is a fourth-generation trucker. His great-great grandfather founded a trucking company in Manhattan, and Robert grew up in the profession. After gaining experience in every role within his family’s business, he earned a bachelor’s degree in Transportation from NY Maritime College. Today, he helps transportation companies develop insurance, alternative risk financing, and risk management strategies.
In her role as a Risk Strategies Transportation and Compliance Specialist, Renee’ Funk helps motor carriers become best-in-class for insurance underwriters and enforcement. Previously a driver and DOT investigator, she brings rich insights from her prior work with the State of Wisconsin and the Federal Motor Carrier Safety Administration.
