How does Cover Whale use SAFER to prevent coverage for unscheduled vehicles and drivers?

Cover Whale requires SAFER vehicle and driver data to match policy application details, ensuring compliance and reducing risk exposure.

Last Updated 4/4/24

The Safety and Fitness Electronic Records System (SAFER), administered by the Federal Motor Carrier Safety Administration (FMCSA), is an invaluable source of safety data for interstate motor carriers. It offers critical information about a company's safety record, licensing, insurance status, among other details such as number of vehicles and drivers.

During binding we require that the number of vehicles and drivers entered in the insurance application match the most recent data in SAFER, and we pull SAFER data automatically before binding the policy. Furthermore, during the term of the policy we regularly check SAFER data to ensure it continues to match the scheduled vehicles and drivers on the policy. These processes provide a double-check mechanism that enhances compliance, ensures accuracy, and protects our business from undue risk. Our platform 


When applying for coverage on the Cover Whale platform:

If a mismatch in the number of vehicles/drivers is detected between SAFER and the policy application, agents are notified on screen prior to binding. Agents have the opportunity to either:

  • Update the vehicle/driver data in SAFER in order to match the information in the application (using form MCS-150); or 
  • Adjust the vehicle/driver details in the policy application to match SAFER.

If agents request to bind a policy with a persistent mismatch, they are required to acknowledge the discrepancy prior to binding. Policies bound with unscheduled vehicles/drivers may be subject to Notice of Cancellation.

 

Following binding:

Cover Whale conducts daily SAFER data checks in order to match the number of scheduled drivers and vehicles on policies with those found in SAFER. If a mis-match is discovered we will alert both agent and policyholder requesting the issue be rectified within 21 days. Addressing the issue can be done by either:

  • Updating the drivers and vehicles in SAFER using Form MSC-150; or
  • Updating scheduled drivers and vehicles on the policy via endorsement

The issue must be resolved with 21 days or Cover Whale will issue a Notice of Cancellation on the policy.

These processes safeguard our exposure to unscheduled vehicles and drivers. It also ensures accuracy in underwriting and adherence with our underwriting guidelines.

Pro-tip: If a policyholder is currently using a Cover Whale-supplied dashcam for telemetry data sharing, to avoid discrepancies with SAFER and any disruption to coverage, we request that the policyholder also connect their vehicles’ Electronic Logging Devices (ELDs) to Cover Whale. Learn more here.