Aon Connect Transportation & Logistics                                                       Volume 3, Edition 3

In this Issue
Local News and Events
National Events & Webinars
Thought Leadership
Aon In The News

Leadership Corner

Welcome to the fall 2015 edition of Aon Connect. Our transportation and logistics clients are planning for 2016. Goals vary, but most include improvement targets in employee and driver retention, operating efficiencies and fuel economy, and service excellence to shipping clients. None of these are new goals, but rather are important areas of business performance that require repeated attention with a focus on innovation and advancement.

You will find several valuable tips in this edition; all intended to help you improve your firm’s performance. Information on coaching drivers to increase miles per gallon, improving driver retention through independent contractor benefits, the importance of adequate excess liability insurance coverage and limits, protecting your business by being aware of changes to wage & hour regulations and exposures to cyber liability, along with the findings of Aon’s annual Global Risk Management Survey.

As we prepare to “go to press” with our newsletter, the issue of blocked CSA Safety Measurement System data has arisen. Pursuant to the FAST Act of 2015, the recently passed Federal Highway Bill, the Federal Motor Carrier Safety Administration (FMCSA) has blocked access to much of the information previously available on the administration's website regarding freight carriers. The agency is conducting a review of the procedures used in calculating its scores and, during that time which is expected to take up to 18 months, no information will be available to the public, including insurance underwriters. We will follow this issue closely and keep our clients apprised as appropriate and necessary.

We hope you are having an enjoyable fall and winter, and find useful information in this edition of Aon Connect.

Mark Brockinton
CEO and Practice Leader
Aon Risk Solutions - Transportation & Logistics Practice

Local News & Events

Better Fuel Economy – Just a Coach Away
Written by David Mitchell, Director of Risk Control & Safety, Aon Risk Solutions, Transportation & Logistics Practice
Vendors have been selling fuel economy hardware for years. Cruise control, auxiliary power units, cab heaters, fairings, trailer wind deflectors, trailer tails, wide-based tires, and many others. With the millions of dollars spent, it seems like trucks should be getting 9 miles per gallon. What we do know is that all this add-on equipment increases cost of new vehicles, increases maintenance demands, makes repairs more expensive, and increases vehicle weight. Read more.


Excess Liability – Protecting Against “The Big One”
Written by Daniel Johnson, Associate Broker, Aon Risk Solutions, Transportation & Logistics Practice
The Federal Motor Carrier Safety Administration (FMCSA) requires motor carriers and freight forwarders to carry public liability insurance defined as bodily injury/property damage/environmental restoration coverage in the amount of $750,000 or $5,000,000 depending on the commodities being transported. The FMCSA requirement for nonhazardous freight moved only in vehicles weighing less than 10,001 lbs. is $300,000. Most motor carriers and freight forwarders carry $1,000,000 in auto liability coverage, which satisfies the FMCSA requirement but is this enough? Read more.


US DOL – Wage and Hour Division, Administrator’s Interpretation No. 2015-1 Summary and Discussion
Written by David E. Choate, J.D., CIC, Risk and Compliance Specialist, Aon Risk Solutions, Transportation & Logistics Practice
The U.S. Department of Labor’s Wage and Hour Division has officially taken a broad, expansive view of what constitutes an employee - or an employment relationship - under the Fair Labor Standards Act (“FLSA”) and who therefore is entitled to protections under FLSA.  On July 15, 2015, Wage and Hour Division (“WHD”) Administrator David Weil issued Administrator’s Interpretation No. 2015-1 (the “Interpretation”), setting forth the factors that the WHD considers in determining whether a worker is an employee or an independent contractor under FLSA.  A copy of the Interpretation is attached to this document for reference.  Meanwhile, we at Aon would like to provide you with a summary of the key points and implications of the Interpretation, as well as information about how we can assist you in addressing the insurance-related challenges of working with independent contractors. Read more.

National Events & Webinars

The Full Picture – Webinar Series
Monthly Insights and Innovation from Aon

Join us twice a month for an informative one-hour webinar to discuss the latest trends and challenges in the insurance marketplace while providing solutions to achieve better results.

Replays and information on upcoming webinars are available at

Aon Property Laser
Thursday, December 17, 2015, 2:00 PM ET
Register here

Save the Date: 2016 Energy Risk Symposium
January 19, 2016 | Houston, TX
Now in its 8th year, this one-day conference will address the latest risk management issues facing companies in the upstream, midstream, downstream, and service sectors. For more information, please
click here.

Save the Date: 2016 Property Symposium
February 1-3, 2016 | Orlando, FL
The 11th Annual Aon Property Symposium brings together our largest U.S. based property insureds as well as key underwriters from around the world to discuss important issues impacting the property insurance marketplace and client-specific program strategies.


Cyber Risks Facing the Transportation and Logistics Industry – Webinar replay available
The increasing use of technology infrastructure creates new exposures to cyber risks across all industries, including transportation. The ability to adequately respond to a data breach incident and insure against loss caused by a network security failure, are exposures posing an increased threat to transportation and logistics companies. Often the potential for loss is greater than anticipated. Listen to a replay of the webinar hosted on October 2, 2015.


Benefits for Independents – Webinar replay
Let your contractors drive and leave the rest to us. Aon's Independent Contractor Benefits Program works in conjunction with the Independent Truckers Group (ITG) to offer benefits to owner operators at affordable prices through single source enrollment, billing and administration, as well as offering exclusive personal assistance with ACA Marketplace Enrollment. Listen to a replay of the webinar hosted on November 11, 2015.



Thought Leadership
Recently published Aon content addressing the latest risk issues

Underrated Threats - Research into the evolving world of risk
Following the launch of the 2015 Aon Global Risk Management Survey (GRMS) earlier this year, the Underrated Threats report presents key findings around the six central themes listed below that have emerged strongly in the 2015 GRMS and asks Captive Executive and Non-Executive Directors for their opinions on the rankings of various risks and findings, as identified by over 1,400 risk decisions makers globally.

  • Damage to brand and reputation
  • Political risk/uncertainties
  • Increasing competition
  • Cyber risk
  • Risk connectivity
  • Board and risk management function alignment


2015 Retail Industry Report
In today’s global environment, retail and wholesale trade companies are facing increasingly complex risks. The ability to anticipate opportunities and effectively respond to risks has become critical for organizations to succeed.

The 2015 Retail Industry report provides comprehensive data that allows retail and wholesale trade companies to benchmark their risk management and risk financing practices against their peers.


Aon SmartBriefs 

Aon’s industry SmartBriefs bring you the latest collective news and market updates on a recurrent basis for readers to be on-point with the week’s latest risk, insurance, regulatory and claims trends and concerns.

To subscribe, please click on the publication(s) of your choice noted below.

Subscribe to Environmental Risk AdvisorSuscribe to Health Care AdvisorSuscribe to Public Sector AdvisorSuscribe to Real Estate AdvisorSuscribe to Tech Advisor

Aon in the News
News you can use from our Aon experts

Business Insurance Q&A with our Health Care Practice Leader
Ron Calhoun, Aon's Health Care Managing Director, recently spoke with Business Insurance about the latest trends and risks affecting the health care industry.

Read more.

3D printing brings new risks and liabilities

Business Insurance recently spoke with Randy Nornes, Aon's Senior Vice President, about how 3D printing is bringing changes to the insurance industry.

Read more.

Contact Information

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About Aon

Aon plc (NYSE:AON) is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 66,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative and effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world’s best broker, best insurance intermediary, reinsurance intermediary, captives manager and best employee benefits consulting firm by multiple industry sources. Visit for more information on Aon and to learn about Aon’s global partnership and shirt sponsorship with Manchester United.

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The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.