Older Workers at Risk Behind the Wheel

Employers should be aware of how the effects of aging can increase risks for older drivers in the workplace.

Older workers have twice the risk of dying in a work-related motor vehicle crash than younger workers, according to data from the Bureau of Labor Statistics. One reason may be that older people are more likely to be injured in a crash and more likely to die if they are injured, the government speculates.

Age-related physical and mental changes can affect driving ability among older workers. Employers need to be aware of the changes and work with their employees to develop safety and health programs that consider older drivers’ needs.

“Although illnesses and other health problems can interfere with driving ability, the effect of many conditions on driving can be reduced or resolved with treatment,” according to the National Institute for Occupational Safety and Health. “The safety of older drivers in the workplace is a shared responsibility of employers and their employees. Forward-thinking safety programs, reasonable accommodations, and open lines of communication between employers and workers can help protect valued older employees from death or disability due to roadway crashes.”

By 2020, 25 percent of the workforce will be at least 55 years of age, according to NIOSH. The agency has created materials, including a new fact sheet to help employers keep their older drivers safe.

The Effects of Aging

As the body changes, many factors can affect driving ability. Employers should be aware of the changes and develop strategies to ensure their older drivers stay safe.

The National Institute for Occupational Health and Safety cites the following changes:

Eyes. Diminished eyesight and the need for more light can affect driving ability in some people. Older workers affected may find it especially difficult to drive at dawn, dusk, and at night. Cataracts and macular degeneration may make it harder to read signs and see colors.

Diseases. Diabetes can make blood sugar levels too high or low, which can lead to drowsiness, dizziness, confusion, loss of consciousness, or seizures. Arthritis may cause stiff joints, limiting movement of shoulders, hands, head, and neck and making it difficult to grasp the steering wheel or apply brake and gas pedals. And sleep apnea can increase the risk of drowsy driving. Medications can interfere with sleep quality, also increasing the risk for drowsiness.

Motor skills. As they decline with age, it can become more difficult to have the strength to step on the brake or gas pedal. A decrease in flexibility makes it harder to see all angles of the car. A lack of coordination can make it more difficult for the upper and lower body to work together while simultaneously braking and turning.

Mental abilities. Attention span, memory, judgment, and the ability to make decisions and react quickly may be affected. Older drivers may feel overwhelmed by signs, signals, pedestrians, and vehicles around them.

Grave Consequences

“Roadway crashes are the leading cause of occupational fatalities for older workers in the U.S.,” according to NIOSH. “Motor vehicle crashes account for 32 percent of all work-related deaths among workers age 55 or older.”

Nearly 3,200 workers over 55 were killed in motor vehicle crashes on public highways between 1992 and 2002. Death rates for work-related roadway accidents increase steadily beginning around age 55.

“A 61-year-old motor coach driver and six passengers were killed when a bus left the roadway around 4 a.m. and entered an emergency parking area striking a parked tractor-trailer and pushing it into a second tractor-trailer,” NIOSH recounted. “An off-duty police officer reported seeing the bus drift within its travel lane a few minutes before the crash. Investigators concluded that fatigue due to an irregular work-rest schedule and a sedating antihistamine were major contributors to the crash.”

The accident on the Pennsylvania Turnpike in June 1998 points up some of the issues that can arise with older drivers. Reduced vision, slower reaction times, declines in cognitive functioning, and chronic health conditions can affect a person’s driving ability (see box).

Older workers are particularly more likely than other drivers to have accidents at intersections, especially when turning left, and when they are merging or changing lanes on a highway. Among the suggestions to prevent older workers from having accidents is to make sure they use caution at intersections, especially when turning left, and to avoid cutting between approaching vehicles when they do.

Preventative Measures

Employers are advised to use prevention strategies to protect their older drivers while workers should learn to maintain their driving ability and safe driving habits as they age. A key member of management should be responsible for setting and enforcing a comprehensive driver safety policy, NIOSH suggests.

Trained health professionals can assess driving ability. Any restrictions on driving should be based on that assessment rather than on a person’s general health status or an “arbitrary” age limit, NIOSH advises.

Refresher driver training should be offered throughout the organization with older workers encouraged to attend. Also, employers should keep complete and accurate records of workers’ driving performances.

Overall health and safety can also reduce the likelihood of older workers having motor vehicle crashes. Employers can promote health and safety of all their workers through programs that target exercise, diet, and smoking cessation.

Among specific suggestions are:

Consider whether the work can be done without driving, or set work schedules that allow workers to obey speed limits and follow applicable rules such as hours-of-service regulations.
Prevent distracted driving by banning texting and hand-held phone use while driving.
Allow workers to take naps of less than 30 minutes or stop in a safe location if they are tired.

Prevent impaired driving by making sure workers understand the possible effects of prescription and over-the-counter medications on their driving. Also, set policies that prohibit driving while the person is under the influence of prescription or over-the-counter medications as well as alcohol and illegal drugs.

Nancy Grover is the president of NMG Consulting and the Editor of Workers' Compensation Report, a publication of our parent company, LRP Publications. She can be reached at [email protected].

How a Carrier Partner Can Help Navigate a Challenging Management and Professional Liability Market

A combination of a choppy economy with increased claims frequency and severity could lead to rate increases in the Management & Professional Liability market.

By: Risk & Insurance | April 3, 2024

Rates in the management & professional liability (M&PL) markets were on the rise from 2020 to early 2023 and are now falling rapidly.

M&PL divisions manage a number of different insurance products including management liability (D&O), professional liability (E&O), employment practices liability (EPL), fiduciary liability policies, cyber, etc. In 2023 and into 2024, a big influence on the marketplace has been the extremely aggressive and softening public company D&O market.

Though these rates have been softening for management liability, that may change over the next few years as companies continue to adjust their business models motivated by economic uncertainty. Layoffs were up nearly 200% last year, Forbes reported, even as other recession indicators, like the inflation rate, improved. A recession could lead to an increased claim activity and force carriers to raise rates.

“Whenever there is a meaningful downturn in the economy, we tend to see claim frequency pop up,” said George Schalick, Jr., senior vice president of the Management and Professional Liability Division at Philadelphia Insurance Companies (PHLY).

With continued fiscal uncertainty, businesses potentially already burdened with pandemic-related claims should seek a carrier with a long history in M&PL products. They will provide much-needed risk management guidance and be better positioned to support their insureds during market fluctuations.

Why Insureds Might See an Uptick in M&PL Claims

George Schalick, Jr., Senior Vice President of the Management and Professional Liability Division, Philadelphia Insurance Companies

The current soft market might come as a bit of a surprise as it does not track with previous underwriting cycles and economic conditions. Afterall, many privately held and non-profit organizations struggled during the early days of the pandemic with shutdowns and rapidly declining revenues. But the Government assistance programs, like the Paycheck Protection Program loans, helped keep many afloat during the tough times.

“During COVID many organizations stopped doing business until they were able to sort out all of the health and safety challenges,” Schalick said. “They were forced to lock down, but then all the government assistance programs allowed them to keep people employed. The increased volume of claims we anticipated we would see coming from the lockdowns and restrictions that were imposed upon businesses in the U.S. didn’t manifest at first.”

“Just because there wasn’t an onslaught of reported claims at the beginning of the pandemic, doesn’t mean the circumstances that would give rise to a claim being reported didn’t occur. Courts and the judicial system were closed or slowed and now that they are back open, we’re starting to see the circumstances that occurred during the COVID lockdowns becoming claims today,” Schalick said. “Litigation is progressing.”

Added to the delayed pandemic litigation is a concern over newer claims that might be filed as the country inches toward an economic downturn. Though a recession was avoided in 2023, experts think a soft dip could occur in 2024, with 76% of economists saying there’s a 50% or less chance of an economic downturn this year — that almost always results in more management liability claims.

“During the Great Recession in 2008, we saw an almost immediate spike in claims because of the economic conditions and the pressure it placed on organizations. They were making personnel changes with significant belt tightening almost immediately.” Schalick said.

What’s in Store for M&PL Policy Rates in 2024?

Despite an uptick in claims and increased economic uncertainty, management liability rates haven’t increased, resulting in market-wide pricing levels that may not meet the increased pressure of rising settlements and jury verdicts.

“Rates are going the other direction and settlement values are not falling,” Schalick said.

The mismatch between rates, claim frequency and severity is, in part, because carriers experiencing the dramatic soft market in the public D&O market are seeking premium gain in the private and non-profit market.

“In the public company market, the rates have been decreasing significantly. The rates were increasing in the private, not-for-profit market, and rightfully so, but there’s a desire to supplement overall mid-size D&O for carriers who also write private not-for-profit, and they see that as an opportunity to aggregate premium,” Schalick said. “So the always competitive landscape in the private, not-for-profit market has dramatically increased in the last 18 to 24 months.”

Still, companies of all sizes and types should be concerned about management liability rates in the future. Legal system abuse is resulting in increases in both the amount of litigation and the size of verdicts plaintiffs are receiving.

Certain areas of the country are particularly vulnerable to this type of legal system abuse. As a result, insureds in these localities are likely to be vulnerable to rate increases.

“The environment is so positive for the plaintiff that forces premium increases so carriers are able to stay in that market long term,” Schalick said.

Why a Tenured Carrier Partner Can Help Insureds Navigate An Uncertain Market

It’s clear that insureds are facing an uncertain M&PL market over the next few years. Fortunately, carriers with a long history in the M&PL space will be there to offer stability.

Philadelphia Insurance Companies has been supporting this market for 35 years. PHLY is committed to offering long-term rate stability, even as economic and claims trends start to push premiums upwards. They have an appetite for all sorts of companies, large and small, for-profit and nonprofit alike.

“We’ve been at this game for a long time and are one of the most tenured underwriters in this space,” Schalick said. “We like to stay very consistent.”

PHLY has worked with both for-profit and non-profit on management liability policies. With dedicated M&PL teams throughout the company’s 13 regions, PHLY provides the support agents and brokers are looking for on behalf of their clients. The teams know their regions well and can respond to local trends. They’re also dedicated to making the renewal process as easy as possible for their partners and policyholders.

“We have real confidence in our results, so we focus a lot on making the renewal experience as painless as possible for all agents and insureds,” Schalick said.

The company is also investing in tools to help insureds avoid losses. Earlier this year, they launched a new online risk management platform, PHLYGateway, which offers resources for insureds on how to create an employee handbook and trainings on issues such as recognizing workplace sexual harassment and discrimination.

If insureds have questions, they can consult a Best Practices Help Line, provided via the platform. That way, they can get on the spot risk management guidance to help them prevent claims.

To learn more, visit: https://www.phly.com/mplDivision/managementLiability/default.aspx.

This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with Philadelphia Insurance Companies. The editorial staff of Risk & Insurance had no role in its preparation.

The Aging Workforce