ExtraMileIssue6

2017 ISSUE 2
NOTES FROM NATIONAL INTERSTATE INSURANCE
Excess
Insurance
Is it right for you?
The Fork in
the Road
A look at tough
claims decisions
FOR OUR PARTNERS IN RISK
Distracted
Driving
The 9 Most Common Causes
and What You Can Do to
Avoid Them
Alaina Macia
Powered by
Her People

LETTER from the President and CEO 3
EXTRA MILER: Nicole Pizzuli 4
Contents2017 ISSUE 2
THE FORK IN THE ROAD: Analyzing Tough Claims Decisions 6
INSURANCE IN PLAIN ENGLISH:
Umbrella vs. Excess Insurance – Which is Better? 8
PRODUCT SPOTLIGHT: Excess Insurance 10
POWERED BY HER PEOPLE
12
A Conversation with Alaina Macia
COME ON IN. WE’RE OPEN! 17
MILITARY DRIVERS WELCOME 18
THE 9 MOST Dangerous Driving Distractions 20
BUILDING PROGRESS 23
SERVICE CENTER REMINDER 24
Subscriptions:
Extra Mile magazine is a free, quarterly publication offered by National Interstate Insurance Company in
support of its customers. To subscribe, call 800-929-1500 or email amanda.genther@natl.com.
Publisher:
Established in 1989, National Interstate Insurance is one of the leading specialty property and casualty
insurance companies in the country. Offering more than 30 different insurance products, including traditional
insurance, innovative alternative risk transfer (ART) programs for commercial companies and insurance for
specialty vehicle owners. Its customized solutions are made possible by its talented and dedicated team
members. National Interstate employs over 700 employees in offices in Northeast Ohio, HI, and MO.
© 2017 National Interstate Insurance Company
On the Cover: Alaina Macia from Ride Right, LLC
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natl.com/youtube
Editorial Contributors:
Amanda Genther
Terri Johnson
Randy Metzger
Chris Mikolay
Nicole Pizzuli
John Rich
Chris Vasquez
Mike Wilson
2

Letter from the President and CEO
TONY MERCURIO
Just Drive.
Soon enough, Cleveland’s last snowplow will be parked until next
winter and our world will be green and vibrant again – and it won’t
come too soon. As spring arrives I hope your year is off to a great
start, and that you enjoy this latest issue of the Extra Mile. In this
edition you’ll read about Alaina Macia, the President and CEO of Ride
Right, LLC. Alaina has enjoyed tremendous success in founding and
growing Ride Right into a premier and vital multi-state transportation
network in Missouri. Under Alaina’s leadership, Ride Right boasts a
vibrant culture focused on hiring the right people and an uncommon
customer retention rate (two things that go hand in hand and
something we focus on at National Interstate). I’m proud of the
partnership we have with Alaina and Ride Right and look forward to
watching her business continue to thrive.
You’ll also read about the scourge of Distracted Driving in Amanda
Genther’s article on page 20. How many times have you glanced
over at another motorist and witnessed that familiar downward gaze,
his eyes set not on the road, but on the phone in his lap? Or, being
honest with ourselves, how many of us have been unable to resist
the allure of the incoming text or email, and driven while holding
the steering wheel in one hand and our phone in the other? We tell
ourselves it will be quick or that the text is urgent and cannot wait.
I am not proud of it, but I have done it, and the statistics would say
most of you have, too.
However, as Amanda’s article points out, driving while texting has
been shown to be more dangerous than driving while drunk! As the
President and CEO of a leading transportation insurer, I wish I could
wave a magic wand and turn off every cell phone in every vehicle. It
would unquestionably save lives. While I can’t do that, I CAN control
one thing: me. So that’s why I have made a commitment to drive
distraction-free in 2017 and beyond. The text or email can wait. I
hope you join me in resisting the urge and in waiting until you are
home, or at the very least, until you can find a safe place to park.
Finally, I hope you read Randy Metzger’s article on how we evaluate
difficult claims decisions. Make no mistake: Claims is a very difficult
and often thankless job. And it is one that is prone to easy Mondaymorning
quarterbacking. Randy’s article details how we often come
to a fork in the road, and how to determine which path to take.
Those decisions are never made lightly and are made more difficult
when information is sometimes scarce and when we deal with so
many unknown outcomes. There are many risk and reward decisions
to evaluate, and Randy does a nice job explaining some of the pros
and cons of the more common tough decisions we frequently make.
In closing, on behalf of the hundreds of dedicated employees at
National Interstate who work hard every day to build an insurance
experience around you, I thank you for your business and for placing
your trust in National Interstate.
Tony Mercurio,
President & CEO
P.S – Here’s a simple but effective trick for avoiding the temptation
of the phone. Before you take your car out of park, put your phone
on silent and throw it in the glove compartment. Then, continue,
distraction free, to your destination (where the roads just got safer).
3

When Nicole Pizzuli left one of the world’s premier hospitals, and
the largest private employer in Northeast Ohio to work for National
Interstate, she had one goal in mind – career growth. Little did she
know that decision would quickly put her in a position to lead the
rebuilding of a critical department that touches just about every single
customer.
“When I came to National Interstate for my interview – immediately
when I walked through the door, I saw so many smiling faces and
thought to myself, ‘were these people staged?’ Through more research,
I found myself watching videos on the company, and quickly realized
the sense of pride that people felt working for this company. I knew
it was something I wanted to be a part of. About six weeks after
my initial meeting with our CEO, I was in the breakroom when he
said hello using my name. How cool is that? I knew I chose a special
company to work for.”
Arriving at National Interstate in 2014, Nicole used the skills she
gained working at the Cleveland Clinic to build a world-class Claims
Contact Center. She has assembled a service-oriented team and is
reinventing processes and procedures to gain efficiencies. Her team
is currently working with IT Development to create a state of the art
claims intake system.
Under Nicole’s direction, two claims intake groups and multiple
operations units have merged into one, synergistic team. While the
transformation required a major collaborative effort, it was worth it –
the insured now experiences a seamless and consistent loss reporting
experience.
“This company embraces change,” said Nicole. “If someone presents
an idea, it’s heard, considered and can usually be easily implemented.
It’s remarkable!” But the change has to also benefit the customer. “My
4

Nicole Pizzuli
Claims Operations Manager
vision for the team is for us to be there for our customers, both internal
and external. I want to truly fulfill the promise of world-class service.
Our customers are the reason we exist, and I want my team to be there
whenever needed. I’m committed to fulfilling that promise.”
Transforming a business process is keeping Nicole plenty busy. But her
real joy comes at home. “My family is my motivation – everything I do
is for them” says Nicole. Like many families, Nicole and her husband
are supporting each other’s careers. “My husband was an active
duty Marine with two combat deployments. His current career in law
enforcement is actually more predictable and was easy to adjust to
after that.
Going the extra mile – for customers, for employees and for her family
– that’s Nicole Pizzuli!
MORE ABOUT NICOLE
1. My favorite thing to do outside of the office is
spend time with family.
2. My team members don’t know that I love to read!
3. My first job was a server at a corned beef restaurant when
I was in high school.
4. My favorite TV show is Friends.
5. My favorite vacation destination is the beach!
6. The best part of my job is the people.
7. My day can’t start until I have coffee!
8. My favorite wine comes from a bottle - I’m not picky!
9. The best description of my desk is let’s just say,
I like to color code.
10. If I could recommend one book for everyone to read,
it would be the entire Harry Potter series. I can’t be
limited to just one book.
11. My favorite team is anything Cleveland!
Our Browns will get there one day!
5

THE
FORKIN THE
IN THE ROAD:
ANALYZING TOUGH CLAIMS DECISIONS
We make decisions every day in our personal and professional lives.
Some are large and some are small, some are easy and some are
always much more difficult. The Claims professional is no different
and may make more decisions on a regular basis than most. The
beauty and the curse of claims is that in many circumstances, there
is no obvious right decision. Instead there are options that depend
on a myriad of circumstances and unique facts. In instances when
liability appears very clear – for example, the driver was distracted
and ran through a stop sign, t-boning an oncoming car with the
right of way, or the driver failed to check his tarps and tie-downs
and a piece of lumber falls from the trailer, striking a motorist – the
decisions are often times much easier. When liability is not so clear
however, the decisions are often more difficult and the outcomes
widely varied. It is these types of scenarios, along with a sampling of
decisions and their potential outcomes that will be explored further.
One of the earliest decisions to make when an incident occurs is
what to preserve on the insured’s vehicle and whether or not to
download data from the Electronic Control Module (ECM). The ECM
is a component attached to the engine of a commercial vehicle that
records information such as speed, hard stops, etc.
The potential injury severity is also a factor and in general, the
more severe the injury, the greater the impact of this decision.
Downloading the ECM data and preserving the vehicle can provide
definitive information such as speed, hard brake and other impact
information. Certainly a positive when deciding to download
and preserve is that the information gained will often provide
documented facts, as opposed to relying on subjective descriptions
offered by the claimant, plaintiff, insured driver or witness. It can be
argued that the more information obtained – particularly scientific
and undisputable information – the better. This will not only allow
us to know the potential defenses, but also the potential concerns
which can shape the strategy for moving the case forward, and
ultimately toward resolution.
If the ECM shows the insured’s unit traveling at an excessive speed
prior to a rear-end collision, the case may be one to employ an
early settlement strategy. Additionally, if the insured’s unit had a
marker lamp out during a nighttime lane change accident, this too
may be a case where early resolution should be considered. On the
contrary, if the ECM data supports the insured driver’s account of
speed and vehicle maneuvering, the foundation of the defense may
be established. Similarly, if the unit is in excellent condition with
proper maintenance and no mechanical issues, its preservation
can be used to promote and emphasize to the claimant, plaintiff,
mediator, judge and ultimately a jury, the safety consciousness and
responsibility of the insured driver.
Is there a downside? A common counterpoint to this argument is
that in some circumstances, the data obtained from an ECM or the
condition of the vehicle itself may have little or nothing to do with
the accident, and only provide fuel for the claimant’s attorney to
change the focus from the facts to the vehicle, driver or company. If
several witnesses emphatically state that the claimant ran a red light
directly into the path of the insured vehicle, does an ECM download
showing the insured’s unit exceeding the speed limit by five miles
per hour prior to the loss help or hinder the defense? Does an outof-adjustment
brake affect the liability and/or exposure in a lane
change accident? Does an internal video showing the insured driver
making rude gestures and obscene comments impact the defense of
a claim where the adverse vehicle struck the insured’s vehicle in the
rear? These potential outcomes are factors to consider when making
the decision on what should be downloaded or preserved.
6

Contacting the adverse driver is another decision that needs to be
made. If all indications and available information suggest that the
claimant is the culpable party and the insured bears little or no
liability, what are the potential outcomes – positive and negative –
of contacting that party? Not wanting to solicit a claim is often the
rationale behind not contacting the adverse party. However, letting
a sleeping dog lie can in some circumstances result in just that; the
claimant does not pursue. In this case, the ultimate outcome is a
good one - a closed claim with no indemnity paid.
Like two sides of a coin, there are downsides and pitfalls to this
approach. Although all other indications of what occurred may be
considered favorable based on the descriptions offered by the insured
driver and witness(es), the complete version of the loss cannot be
established without knowing the adverse party’s perception of what
occurred. There can be and are occurrences where the adverse party
has a different perception than the insured driver or witness(es). Did
they see road debris, an animal, a merging vehicle or other hazard
that was not visible to the insured driver or witness? Without knowing
their perception, the strategy and defense can only be based on
assumption, as opposed to countering actual allegations. In a pure
comparative fault jurisdiction, a claimant is not barred from recovery
unless found to be 100% at fault. In such a venue they can collect the
percentage of damages from the other party even if that party is only
1% at fault. Although 1% is small, even 1% of a very large number can
itself be a big number. Without contacting the adverse party, the extent
and potential value of their injuries are unknown. Not making contact
also eliminates the possibility of settlement discussions to eliminate
the risk of an adverse outcome, even if that risk is nominal. Essentially
this approach removes the possibility of finality and leaves open the
unknown until the statute of limitations has expired or the status quo
changes and a claim is pursued.
As much as you may hear about the highly unfavorable cases in
the media or around the water cooler, the favorable cases may not
always garner as much attention. Despite having favorable facts,
we have sometimes seen that this does not prevent claimants and
attorneys alike from pursuing claims against the insured and hoping
to collect damages. Here too, a decision must be made regarding if
and how to communicate the position on liability and/or causation.
When all known and available information suggests that the
insured driver bear no fault, should a claim denial be sent? In these
instances, sending a formal claim denial indicates a clear message
to the claimant and sets a tone that if a lawsuit is filed, it will be
vigorously defended. On the other hand, if a denial letter is not
sent, you may not find out the extent of an injury and potential
full value of the case. Another potential risk is the attorney filing
a lawsuit may not be receptive to any discussions on resolution.
This potentially increases the cost of the case in litigation fees
and expenses.
These are but a few of the numerous decisions involved in
investigating, evaluating and managing claims. One certainty in
claims is this – that every case is different. Every claim is unique
and the decisions made must be specific to the attributes, facts and
details of the claim at hand.
RANDY METZGER
Director – Truck and Environmental Claims
7

Plain
English
INSURANCE IN
In Plain English is an ongoing feature designed to take the mystery out of all the agreements,
exclusions, conditions and definitions found in your insurance policy. We’ll choose topics based
on the questions we hear most often, as well as suggestions we receive directly from you.
UMBRELLA VS. EXCESS LIABILITY: WHICH IS BETTER?
In this installment of Insurance in Plain English, we are going to
shed some light on two questions:
➼ ➼ “What are the differences between excess liability and umbrella
liability policy?”; and
➼ ➼ “Which is the better choice for my organization?”
First, some housekeeping: Any explanation of umbrella and excess
liability insurance policies must begin with a disclaimer. The forms
used by insurance companies can differ significantly in what is and
is not covered, so this article will deal with the proverbial average
policy, making note when National Interstate’s approach may differ.
Also, when the term ‘primary policy’ is used, it refers to the insurance
policy that would be the first to respond, most commonly providing
$1 million of coverage, and sometimes above a deductible or selfinsured
retention (SIR).
Now that we put that behind us, let’s dig in.
Q. Aren’t “Umbrella” and “Excess” really two terms that describe
basically the same policy?
A. Any policy that provides additional limits above the General
Liability “per occurrence,” Auto Liability “per accident” and/
or Employers Liability “each accident” limits, is, technically, an
excess liability policy. There are a number of approaches that can
accomplish this, two of the most frequent being Umbrella and
Follow-Form Excess Liability Policies. For this discussion we’ll call
them umbrellas and excess policies, respectively.
Regardless of the actual policy chosen, the objective is the same:
increasing the amount of risk the insured transfers to an insurance
company. If the insured has Automobile and General Liability
policies, each providing limits of $1 million ‘per accident’ and ‘per
occurrence’, respectively, and they purchase $4 million in excess
or umbrella limits, the available protection for an accident or an
occurrence would now be $5 million.
Q. So, if they are not the same. What is the most obvious difference
between the two?
A. Umbrellas are complete policies with their own insuring
agreements, exclusions, description of who is an insured, policy
conditions and definitions, any of which may differ from those in
the primary policy or policies over which it sits. A typical excess
policy is only a few pages long and states, in essence, that whatever
is covered in the primary is covered in the excess. Additional
endorsements may be attached to further restrict coverage or, rarely,
broaden it.
8

Excess policies of many insurance companies add limits to only one
policy, requiring separate policies to cover the Auto liability, General
Liability and the Employers’ Liability. National Interstate’s followform
excess policy borrows the umbrella approach and can provide
additional limits above multiple primary forms.
Q. If National Interstate’s follow-form excess and umbrella policies can
add higher limits to more than one primary policy, aren’t they the same?
A. There can be some significant differences. An umbrella,
being a complete insurance policy may provide coverage that the
primary policy does not, thereby broadening coverage. An excess
policy, while it may have a few of its own conditions, generally
follows the coverages, exclusions and other conditions included
in the primary policy with no expansion of coverage, hence the
name: Follow-Form Excess.
Q. So, an umbrella can broaden the coverage provided in the primary
policy. Are there any other differences?
A. Yes, there are two more advantages of an umbrella policy that
need to be mentioned; they involve what’s called its “drop-down”
provision. This provision applies in two instances:
In the event that the primary policy excludes something not
also excluded in the umbrella, the umbrella would drop down
and provide coverage once the insured has paid the Self-Insured
Retention (SIR), stated on the declarations page. A typical SIR is
either $10,000 or $25,000.
Unlike the Auto Liability, the General Liability and Employer’s Liability
also contain Aggregate Limits for all claims during the policy year.
Each General Liability or Employer’s Liability claim reduces the
aggregate limit remaining to pay for losses on that policy. If losses
against the primary policy have eroded the limits to the point that
they are not sufficient to support a subsequent claim, the dropdown
provision of the umbrella could apply in this instance as well,
subject, again, to exceeding the SIR.
Q. So, if the umbrella might broaden coverage of the primary policies,
and contains the significant advantage of the drop-down feature, why would
someone buy an excess policy?
A. In a word: money. Because an excess policy does not contain
a drop-down provision and rarely provides any more coverage than
is included in the primary, in most cases an excess policy is less
expensive than an umbrella policy with the same limit.
and conditions needed to change, resulting in the possibility that
the excess may provide broader coverage than the primary, alone.
So, National Interstate’s excess policy has the look and feel of an
umbrella in some ways.
Q. Is there anything else that an agent, broker or an insured’s risk
manager should be aware of related to umbrella and excess policies?
A. One last thing worth mentioning is that, whenever possible,
the effective and expiration dates of all primary liability insurance
policies should be the same as the umbrella or excess policy over
which it sits. This is referred to as concurrency.
How an umbrella or, especially, an excess policy responds to a claim
is dependent on the coverage provided in the primary forms. There
is a chance that terms of the primary policy may change from one
year to the next. If the dates of the primary and excess are not
concurrent, these changes would take effect in the middle of the
excess policy’s term. The consequence of such an event would be
that the excess may not provide coverage that it would have, had
the primary policy not changed. While most umbrella and excess
policies contain specific language of how to untangle the web of
issues that could arise, it remains advisable that the effective and
expiration dates of all liability policies be the same, or concurrent.
Q. So, is there a right answer to the question of which is the best policy
for an insured?
A. Everyone’s perception of their business risk and tolerance for
retaining it is different. This will guide the amount of additional
limits purchased. Inevitably, cost will enter the decision as well.
And, because there can be significant coverage differences between
carriers’ umbrella forms and excess forms and that, in some cases,
other primary liability policies may be added, a detailed coverage
analysis is a good practice.
For all but one of our products, National Interstate offers an excess
policy, but with some features of an umbrella, delivering a broad
coverage platform at a reasonable premium. We have a very high
level of confidence in the insurance professionals with whom we
deal; they are the best of the best. So, we encourage them to have a
conversation with their clients to decide what the right choice is for
them. As always, National Interstate is ready to act as a resource to
assist our agents and brokers when needed.
Q. OK, I get it; an excess policy will always be less expensive than an
umbrella, right?
A. As a rule, yes. But, the difference may not be as great as
one might expect. As stated earlier, National Interstate offers an
excess policy that has some of the characteristics of an umbrella.
For instance, our form has been structured to act like an umbrella
and provide excess limits over more than one primary liability policy.
In order to accomplish this, some definitions, exclusions, terms
JOHN RICH
Director of Underwriting - General Liability
9

Excess
Insurance
32A 33A 34A
10

32A 33A 34A
How would your business fare against a sudden catastrophic
claim? Or, a natural weather disaster that wipes out 90% of
your fleet? Having the extra protection to guard against such
large, unexpected risks is simply good business sense. And
for that, National Interstate offers Excess Liability insurance.
WHAT IS EXCESS INSURANCE?
Excess Liability insurance is a policy issued to provide coverage
when an underlying liability policy has reached its limit. Federal
law requires motor carriers to maintain minimum levels of financial
responsibility that range from $750,000 for general freight carriers,
up to $5,000,000 for carriers of hazardous materials. These limits
have been in place since 1985 and will rarely contain the cost of a
catastrophic accident that occurs today. For a detailed explanation
on the difference between Excess Liability and Umbrella insurance
policies, check out John Rich’s article on the previous page.
WHY DO I NEED EXCESS INSURANCE?
According to a 2013 study conducted by the Federal Motor Carrier
Safety Administration (FMCSA), although a majority of crashes fall
below current limits, a small but significant share of crashes exceed
the current limits. 1 These findings provide justification in favor of
increasing the minimum levels of financial responsibility. However,
even if the minimum levels are increased, there will always be some
crashes that will fall above that level. There is no realistic dollar
amount that will necessarily ensure every possible crash victim is
fully compensated. Regardless of if or when the minimum levels of
financial responsibility are increased, there will still be a need for
companies to protect their assets with excess liability insurance.
Motor carriers have done an excellent job over the last 30 years to
continually drive down the frequency of accidents through the use
of improved safety techniques and new technology. Unfortunately,
as frequency was driven down, the cost of catastrophic claims
continued to escalate. One of the main factors for the increase
in catastrophic claims has been the increase in medical costs.
According to the Bureau of Labor and Statistics, medical care costs
have increased over 400% over the last 30 years. 2
Although the frequency of fatal accidents involving large trucks
has declined 20% over the past decade, the number has actually
increased in the last year - this according to an article from National
Law Review. Furthermore, there has been an increase over the past
few years in the number of large verdicts where juries have awarded
tens of millions of dollars or more to families of truck accident
victims. 3
WHAT ARE THE BENEFITS OF A NATIONAL INTERSTATE EXCESS POLICY?
The rapidly increasing severity of claims has had an impact on the
insurance industry as well. Several larger insurance companies have
pulled out of the excess and primary markets leaving customers in
a rush to find last minute replacements for their expiring coverages.
National Interstate has remained a stable player in the trucking
industry for over 25 years and continues to provide insurance
solutions for best-in-class operators for their primary coverages
including Auto Liability, General Liability, Workers’ Compensation,
Physical Damage and Cargo, as well as Excess Liability. Advantages
of a National Interstate Excess Liability insurance policy include:
➼➼
Follow-Form Excess Policy
➼➼
Claims continuity with underlying policy
➼➼
Experienced in-house claims handlers
➼➼
Niche industry expertise
➼➼
Interest-free payment plans
➼➼
Issued on A.M. Best “A” Rated National Interstate paper
➼➼
Unsupported Excess over select carriers
For more information on Excess Liability insurance, please contact
Michael Wilson at 800-929-1500 x1186 or michael.wilson@natl.com.
Sources:
1 https://www.fmcsa.dot.gov/sites/fmcsa.dot.gov/files/docs/Financial-Responsibility-Study.pdf
2 https://www.bls.gov/cpi/data.htm
3 http://www.natlawreview.com/article/large-verdicts-truck-accident-cases-rise
MICHAEL WILSON
Director, Truck Underwriting & Analytics
11

12
Alaina Macia
President
and CEO
Ride Right, LLC

Powered by
Her People
As a women-owned, multi-state operation, Ride Right, LLC
provides more than 1.2 million trips to the general public,
transit-dependent, elderly, disabled and transportation
disadvantaged populations each year. The company offers bestin-class
paratransit, fixed route, special needs transportation and
mobility management services focused on quality, while delivering
cost savings and increased efficiencies to the communities it serves.
This issue, we caught up with President and CEO, Alaina Macia,
to talk about her company’s commitment to quality, safety and
passenger satisfaction.
Can you talk about your career
path and how you came to be the
President and CEO of Ride Right, LLC?
It really started in 2003 when my parents asked me to come into the
family business - which is also on the transportation side - but on
the healthcare part of the transportation arena and work with major
healthcare/managed care operators. With the family business, we
contracted out transportation services and I just really felt the need
for higher quality transportation operators than what we were finding
out in the market. Additionally, in some locations where maybe there
was a monopoly in a certain geographic area that didn’t have a lot
of competition, some could be created. Competition is healthy for
all industries and for the payers and the clients in order to obtain
the best service at the best price, and that’s really what got me
interested in starting a transportation company. It’s a different skill
set than what we had internally at the family business because
Ride Right is an actual operator of transportation versus a manager
of transportation. I knew the best way to start a quality company
was to hire individuals that had experience delivering transportation
and high quality services. I recruited some of the best people in
the industry who I knew were looking to work for a company that
had a quality operation and a customer service-oriented mindset.
That’s really how we got Ride Right started in 2007 with about 10
employees. Today, we’re close to 600 employees across 11 states!
What were the main reasons
that you decided to enter the
transportation industry as an owner?
There was definitely a need for it. Not only was there a need for a
quality transportation provider, there was a necessity for a company
that was focused on the client, both the payer and the rider. I think
Ride Right is a little unique, though. One of my clients said it the best
– he said “You’re not chasing revenue, you’re building a company.”
And, that’s true. We don’t bid on everything that comes our way
and we don’t go after every contract. We pick the clients that we
13

14
Treating people with
respect has been our secret
sauce. It’s pretty simple,
but not everyone does it.
want to work for and that are good to partner with. We’re picky
about our growth, but we’re like that so we can be successful. We
have had 100% client retention throughout our contract rebids from
2007 through today. That’s when you know you’ve done something
successful – when your clients choose you again and again.
What was the biggest obstacle
shifting from healthcare to
transportation?
First and foremost credibility was a factor and establishing in the
mind of the client that you can be a viable contender in a new
market despite not having operated on those contracts in the past.
And, that was really the key to hiring experienced professionals,
so that when prospective customers asked, “Do you have five
years’ experience managing paratransit operations?” we were able
to leverage the experience and backgrounds of those individuals.
They not only had the experience factor, but they had the financial
backing, as well. We did leverage my parent’s company, MTM’s
(Medical Transportation Management) corporate headquarters and I
think that was a key success factor in that we were able to leverage
Legal, HR and Accounting and Finance at a reasonable rate. It was
a win-win for both organizations. MTM could offset overhead costs
and Ride Right did not have to build an entirely new team.
What has been your greatest
challenge as a female CEO in the
transportation industry?
I’ll flip this question on its head and say that I think being a female
in a very male-dominated industry has served me well. I think
there are obviously more discussions that need to take place about
diversity and the leadership of women in the workplace and on
boards, but frankly, a lot of my clients are women. There are a lot
more women in paratransit than you would think. Maybe not in the
highest levels but at the county government level, these operations
are being managed by women. In fact, I was at an interview this
week where probably half of the panel of ten people was women,
so that’s exciting.
Also, I think it’s an advantage. As a woman, you feel like you have to
try and establish your credibility, but I do that through great service
and then my gender becomes a non-discussion. People always say
to me, “Have you had discrimination in the workplace?” Maybe I
have, but I choose not to pay attention to it; I just work harder.
Ride Right is a multi-state
operator, spread across the country –
how has your company managed such
wide-spread growth so well?
I think it starts with hiring good people, both in our regional locations
and at the corporate level, to support those regions. I always tell the
general managers in the field that they’re mini CEOs. We give them a
budget and help them with key processes and support services, but
ultimately it’s their job to extend our employee engagement model
that we are very big on at Ride Right. We make sure that they have
appropriate wages and benefits to staff the drivers and it’s our job
to make sure all of their day-to-day activities are as seamless and
streamlined as possible. Additionally, we bring the field together
with corporate. We get together as a whole company once a year
to strategize and talk about how to improve the company and our
people. We also have regional people who visit the field to ensure
that our Mission and Vision are being lived. Ultimately, the clients
will tell me. They know who I am. I’ve been in the room with them,
typically if we’re bidding on a contract. I rarely get phone calls, but
when I do, I make sure that we correct any issue that we have in
their eyes and that’s the key. Having that open door communication
policy with your GMs and your clients is critical. People are the only
way that I know to be successful. Treating people with respect has
been our secret sauce. It’s pretty simple, but not everyone does it.
What are the top three factors
that have contributed to the growth
that Ride Right has achieved over
the years?
Number one – it starts with the people. We have to invest in good
people. I think a lot of small businesses and entrepreneurs always
question when you add that additional full-time employee, but for

me, I’m always investing in people. They’re what’s going to carry
my business forward and I’d rather pay them first and myself last.
Secondly, we are aggressive yet selective, in that we bid on what we
know we can manage and we don’t go outside of our wheelhouse
very often. That way, we don’t spread ourselves too thin and we’re
able to really target the right clients for Ride Right.
Third, similar to people, we invest in technology because it’s
the key that helps us manage the growth. We’ve invested in
routing, scheduling and dispatching technology to optimize route
performance; fleet software to manage vehicle age, wear and
properly retire vehicles; plus cloud-based telephony software so
our operations are always backed up in the case of weather or
electrical issues.
Ultimately, the number one thing that we’re selling and that has
helped us grow is our culture. Our culture is something that clients
are looking for and they understand that if you don’t pay drivers
fair wages, service will suffer. So, we lead with that and with our
employee-centric model. We don’t win business while sacrificing our
drivers. When you do that, you create quality and safety issues.
What are the biggest obstacles in
the ADA paratransit industry?
When the economy is doing really well, driver shortages exist. There
are more jobs available to drivers, so being cognizant of recruiting
and training the best driver force is number one for us. To combat
driver attrition, we offer driver incentive programs and driver safety
bonuses. We also have a Driver Rewards Program that provides
additional bonuses for good customer service, good attendance, etc.
The biggest way to combat the driver shortage is to engage your
driver, talk to your driver and ride along with them in their vehicle.
It’s not always about money; it’s about recognition and employee
engagement. Our GMs are even rated on driver recognition and
engagement – it really is the number one piece to solving that
problem.
Safety – making sure that we not only operate our vehicles safely,
but we care for and secure our passengers correctly and that we
provide them with great customer service.
Fuel has been stably low, so it hasn’t been on our radar as much, but
traditionally, we have to watch for that as well.
What are some of the different
ways in which Ride Right separates
itself from other ADA paratransit
operators? For example, your company
is a certified Woman-Owned Business
Enterprise (WBE). How do you
leverage this certification and other
certifications to grow the operation?
Different states have different requirements and different
participation levels and sometimes there are certain revenue
thresholds, therefore we don’t qualify in every state, but where
we do, we absolutely utilize that to our advantage and bid on
those contracts.
The way that we really separate ourselves from the competition is
15

to say that we don’t offer a traditional cookie-cutter transportation
model. We work with the client, listen to them and create a
customer-centric solution for them. And ultimately, it comes down to
investing in the right places within the company. A lot of companies
will put their bottom line ahead of maintenance, new hires or driver
incentives and we simply just won’t do that.
What makes you a
best-in-class operator?
We really enable our general managers at the field level to make the
best decisions to manage the business. It goes back to putting off
investments to make a bottom line. We tell them they have a budget
they can use for what’s best for their operation and their clients.
Empowering people to make the right decision is another way to
improve employee engagement and morale, especially when we’re
reliant on a regional-based model. That’s really key.
What has been the reason for
Ride Right’s desire to continue their
appetite for taking on risk?
I think we’re really comfortable with our safety record and we’re
also of the mindset that we want to properly build our reserves so
that we can take on additional risk. It also depends on the markets
that you’re in. From either urban density to the nature of litigation in
that area, you have to really understand what your risks are in that
market before you engage.
Safety is a daily conversation beginning when the driver gets in the
vehicle throughout the entire day. Whether it’s communications on
holidays, weather or traffic updates, back to school changes - these
are things that will change transportation and we talk about it all
the time. Also, we obviously use cameras in our vehicles so that
triggering safety events are captured and we can have discussions
with those drivers. If there are repeated issues, then we take the
next step and remove that driver because we’re not willing to risk
the safety of our passengers or our safety record on one driver. Yes,
it’s transportation, and accidents will happen, but we don’t want to
have one of those accidents on our records.
Is community involvement
important to Ride Right and
if so, how and why?
It really is – we are a public agency in that regard. We are an
extension of our client’s staff, which is typically the county
government, and we want people to trust us. We handle the elderly
who sometimes cannot advocate on their own behalf and we want
to be a trusted partner and caregiver in those cases. We transport
your grandmother, great grandfather or other loved one. It’s very
important for us to be seen as a good community partner.
Locally and regionally, we definitely get involved in the community.
Right now, we have locations participating in Toys for Tots and Stuff
the Bus. We also volunteer for Habitat for Humanity and host blood
The biggest way to combat the
driver shortage is to engage
your driver, talk to your
driver and ride along with
them in their vehicle.
drives. It’s our employees’ passion and it makes them very proud to
work for a company that continuously gives back to the community.
What has been your proudest
moment with Ride Right?
My proudest moments are when we retain a bid or a contract
because it says we’re doing all the right things. It shows that the
client is happy with our service.
In 2016, we had four contracts go out to rebid and we were able
to retain all of them. That was a great year for us. We don’t have
the mindset that as you get bigger as a company, you’re bound to
lose something; we just don’t believe in that. When you can sleep
at night knowing you’re not going to lose a contract, you know your
team is providing a good service.
What does Ride Right look
like in 10 years?
We’re pretty goal-oriented people around here! Our revenue currently
sits at $40-50M. In 10 years, I’d like to see $200M in revenue and
over 2,000 employees. And of course, hopefully we’re still at that
100% client retention with our safety record intact!
16

Come On In. We’re Open!
TERRI JOHNSON
Vice President of Customer Service
When your organization made the decision to join National Interstate,
we promised you world-class service.
Our team is committed to that promise and we’re continuously looking
for ways to enhance your experience with us. One of the recent
enhancements we made is our improved Claims Contact Center.
On January 3, 2017, we extended our hours to better serve all of our
customers. We are now available by phone Monday through Friday
from 8:00 a.m. to 9:00 p.m. EST. Our Claims Contact Center can
assist you in multiple ways, from reporting new claims to inquiries on
existing claims, as well as answering general questions.
When the office is closed, our afterhours reporting service continues
to be in place. We hope this extension of services gives you additional
flexibility to meet your business needs. As always, your feedback and
suggestions are greatly appreciated.
To contact the Claims Contact Center, please call 800-929-0870.
17

MILITARY
DRIVERS
The driver shortage in the United States is a reality and one
that is not going away anytime soon. It is those companies
that deal with it effectively that will have a competitive
advantage. Recently signed government programs may offer
transportation organizations relief and an untapped candidate pool
– military veterans.
Yes, there have been programs in existence since 2011 1 to
transition military drivers into civilian commercial license holders,
but the signing of the Fixing America’s Surface Transportation Act,
or FAST Act, implemented federal regulations to help streamline
this process and make commercial transportation a more viable
civilian career for separating Service Members. The FAST Act
authorizes $305 billion over fiscal years 2016 through 2020 for
highway, public transportation, highway and motor vehicle safety,
motor carrier safety, hazardous materials safety, rail, research,
technology and statistics programs. The FAST Act increases the
skills waiver program time frame, allows for DOT med certificates
to be acquired by the Department of Veterans Affairs physicians
and permits military drivers to apply and be tested in the state
where they are stationed. 2
Another significant aspect of the FAST Act is a pilot program that
allows for select military personnel between 18 and 21 years
of age to operate CMV’s in interstate commerce. Because many
active duty Service Members are already 21 or older when they
leave active duty, the program was designed primarily for current
Reserve and National Guard personnel. 12 Over the course of three
years, select drivers will have their safety performance evaluated
against a control group of other CDL drivers aged 21 to 26. The
intention of the program is to help determine if age is a critical
safety factor.
Veterans represent a significant portion of America’s workforce,
and as the military continues to undergo drawdowns and
sequestration cuts, the population of veterans will continue to
increase. However, military strength reductions mean that greater
numbers of young Service Members are joining the workforce as
they seek a civilian career. 3
According to the Bureau of Labor Statistics, there are 22 million
veterans in the United States. Of those, nearly 11 million are
currently in the U.S. labor force and approximately 4.5 million are
under 45 years of age. 5 Additionally, 148,000 of those veterans
who are between 18 to 45 years old are presently unemployed
and many more are underemployed. 6 On average, there are an
additional 200,000 Service Members leaving the military each
year. 7 However, the military workforce doesn’t end with separated
veterans, because there are an additional 1 million National Guard
and Military Reserve personnel currently serving who have and/or
need civilian employment.
18

Welcome
The transition from military life to civilian life can be cumbersome
to navigate, with one of the most significant obstacles being
employment. For many, military service provides a source of
identity and purpose – a significant contribution to their life’s
work. Upon entering the civilian world, some Service Members
struggle to find that same significance in their jobs as they seek
a new career. 8 The transportation industry – the backbone of
America’s economy – can offer veterans an opportunity to support
their country internally, after having served to defend it.
There are numerous veterans and Reserve Component Service
Members who either don’t have a civilian equivalent to their
occupational specialty or don’t wish to pursue a civilian career
in their occupational specialty. The FMCSA recognized this and
awarded nearly $1 million to commercial driving schools to be
used for the training of veterans as commercial truck and bus
drivers. 9 These schools received grant money as a part of the
Commercial Motor Vehicle Operator Safety Training Grant Program,
which began in 2005. 10
Veteran and Reserve Component Service Members have an easily
transferable skillset and represent a relatively untapped potential
to revitalize the commercial driving workforce with reliable, safe
and quality employees. Companies need to learn how to hire good
military drivers.
For more information about the DOT’s military employment
initiatives, please visit https://www.fmcsa.dot.gov/registration/
commercial-drivers-license/military. Additionally, to connect
with veterans seeking employment visit https://www.va.gov/
vetsinworkplace/.
You can also check with your state department of Veterans
Services for state specific veterans hiring initiatives, or other
industry organizations such as Troops To Truckers http://
troopstotruckers.com/business/, Hire Heroes USA https://www.
hireheroesusa.org/, Hire Our Heroes https://hireourheroes.org/
corporations/ and many more.
Sources:
1. https://www.fmcsa.dot.gov/registration/commercial-drivers-license/military-skills-test-waiver-program
2. https://www.fmcsa.dot.gov/fastact/veteran-drivers
3. https://www.federalregister.gov/documents/2016/08/22/2016-19948/commercial-drivers-licenses-proposed-pilot-program-to-allowpersons-between-the-ages-of-18-and-21
4. http://index.heritage.org/military/2017/assessments/us-military-power/
5. https://www.bls.gov/news.release/pdf/vet.pdf
6. https://www.bls.gov/news.release/pdf/vet.pdf
7. https://www.dllr.state.md.us/mil2fedjobs/learn_mil.htm
8. http://www.military.com/veteran-jobs/career-advice/military-transition/finding-passion-and-purpose-after-the-military.html
9. https://www.fmcsa.dot.gov/newsroom/fmcsa-awards-nearly-1-million-grants-help-train-veterans-jobs-commercial-truck-and-bus
10. https://www.fmcsa.dot.gov/cmv-operator-safety-training-grant/commercial-motor-vehicle-operator-safety-training-grant-applicationaward-process
CHRIS VASQUEZ
Risk Management Associate
(and 1LT BTRY B, 1-174th ADA BDE OHARNG)
19

DISTRACTED DRIVING:
THE
MOST
9
DANGEROUS
DISTRACTIONS
KNOW YOUR RISKS
1.2 MILLION 4 TIMES
According to the World Health Organization more than 1.2 million
people die in road crashes worldwide each year – the equivalent
of one traffic-related fatality every 30 seconds – and another 20 to
50 million people are injured.
Distracted drivers are about 4 times as likely to be involved in
crashes as those who are focused on driving.
20

Beyond texting while you’re behind the wheel, distracted driving means driving while doing another activity that takes your attention
away from what you should be focused on - driving. 1
In fact, there are three main types of distraction:
1. VISUAL: TAKING YOUR EYES OFF THE ROAD
2. MANUAL: TAKING YOUR HANDS OFF THE WHEEL
3. COGNITIVE: TAKING YOUR MIND OFF OF DRIVING 2
Here, we’ll explore the nine most dangerous types of driving distractions:
9. SMOKING-RELATED ACTIVITIES:
Includes smoking, lighting up and/or putting
ashes in ash tray. In crash reports involving
at least one fatality, 1% of law enforcement
officers cited smoking-related activities. 3
8. COSMETICS:
Have you ever pulled up alongside of
a vehicle and its driver was putting on
mascara with one hand and driving with the
other – but her eyes were looking up in her
mirror? Unfortunately, 5% of drivers admit to
applying makeup, perfume and/or lipstick
while driving. 5 Yikes!
7. SLOWING DOWN TO SEE AN ACCIDENT:
We’re all guilty at some point or another
of rubber necking, even if it happens
subconsciously. Dangerously, 21% of
motorists admitted to have slowed down to
have a look at an accident involving other
motorists. Of course, this means that the
motorist takes his or her eyes off the road
ahead, risking another accident. 5
6. DROWSY DRIVING:
A AAA Foundation study completed in
November 2014 found the impact of having
drowsy drivers on the road is substantial.
Drowsy drivers are involved in an estimated
21% of fatal crashes, up from 16.5% from
the previous study completed in 2010, as
most drivers drift out of their lanes or off
the road entirely. Drowsy drivers themselves
are often crash victims who die in single-car
crashes. 4
80-90 PERCENT 5TH LEADING
Driver behavior is responsible for 80 to 90 percent of these road
crashes, meaning that preventable behaviors contribute more to
fatalities and injuries than road conditions or vehicle defects.
By 2030, road traffic injuries are projected to be the fifth leading
cause of death worldwide, surpassing HIV/AIDS, all forms of
cancer, violence and diabetes. 9
21

5. PHONE CALLS:
Nearly 1 in 4 (23%) drivers admit to making
or receiving phone calls while driving,
despite ad campaigns warning of such
dangers and local and state cell phone bans
while driving. 5
2. MUSIC:
61% of motorists admit to being distracted
while driving by their radio, CD player and
their iPod. Risks are increased by drivers
flicking through their smart phone or iPod to
locate certain songs. 5
4. SENDING TEXT MESSAGES:
Drivers who text can be more than 20 times
likely to crash than non-distracted drivers. 9
A 2011 CDC study compared the percentage
of distracted drivers in the United States
and seven European countries: Belgium,
France, Germany, the Netherlands, Portugal,
Spain, and the United Kingdom. Overall, the
study found that a higher percentage of U.S.
drivers talked on the phone and read or sent
emails or texts while driving than drivers in
several other European countries. The study
also found that about 33% of drivers in the
United States reported that they had read or
sent text messages or emails while driving. 7
1. FOOD AND DRINK:
Wait to eat your drive-thru cheeseburger
until your vehicle is safely parked, or you
arrive home. Why? The National Highway
Traffic Safety Administration estimates that
eating and driving increases the likelihood
of crashes by 80 percent. Additionally, 65
percent of near-miss crashes are caused
by distracted drivers who are eating or
drinking while driving. The NHTSA also
ranked the 10 most dangerous types of food
to eat while in drive. Topping the list were
chocolate, soft drinks, jelly and cream-filled
or powdered doughnuts, fried chicken,
barbecued food, hamburgers, chili, tacos,
soups and coffee. 8
3. SOCIAL NETWORKING:
It seems like everyone has a smart phone
nowadays which means social media is
only a touch away. Using social media while
driving can be three times more dangerous
than drinking and driving. According to
research conducted by the Transport
Research Laboratory and the Institute of
Advanced Motorist, the reaction time of a
driver is slowed by 38% while using their
smartphone, as opposed to the 12% of
someone who has been drinking. 10 Worse,
people are filming and taking pictures of
themselves on Instagram while they’re
driving. And not just a few people: there
are over 3 million posts on Instagram
tagged with “#driving,” nearly 50,000
with “#drivinghome,” over 9,000 tagged
“#drivingtowork” and more than 3,500
tagged “#drivingselfie.” 6
STAY FOCUSED ON THE ROAD
AHEAD AND MAKE A COMMITMENT
TO YOURSELF TO NOT DRIVE
DISTRACTED. REMEMBER,
NATIONAL INTERSTATE IS WITH
YOU EVERY MILE OF YOUR JOURNEY.
Sources:
1. National Center for Statistics and Analysis, Distracted Driving: 2013 Data, in Traffic Safety Research Notes. DOT HS 812 132. April 2015,
National Highway Traffic Safety Administration: Washington, D.C.
2. National Highway Traffic Safety Administration. Policy Statement and Compiled FAQs on Distracted Driving. [cited 2016 Feb 23]
3. http://www.propertycasualty360.com/2013/04/11/10-deadliest-driving-distractions?page_all=1
4. AAA Foundation for Traffic Safety/Brian C. Tefft. Prevalence of Motor Vehicle Crashes Involving Drowsy Drivers, United States, 2009
– 2013 (November 2014)
5. http://www.drive-safely.net/top-ten-driving-distractions/
6. http://www.huffingtonpost.com/2013/10/31/instagram-while-driving_n_4181120.html
7. Rebecca B. Naumann, MSPH, Ann M. Dellinger, PhD, Div of Unintentional Injury Prevention, National Center for Injury Prevention and
Control, CDC. Mobile Device Use While Driving – United States and Seven European Countries, 2011. Centers for Disease Control and
Prevention.
8. http://www.decidetodrive.org/distracted-driving-dangerous/eating-driving/
9. National Highway Traffic Safety Administration. Distracted Driving Global Fact Sheet [5/17 v2]
10. https://www.drivesafer.com/blog/the-dangers-of-using-social-media-while-driving-2/
AMANDA GENTHER
22
Media Relations Specialist

Building for the Future Update
Last issue, we announced plans to expand our Richfield headquarters
by adding a third building. The new building will be the centerpiece of
our campus and have several features including enclosed walkways
between our two existing buildings, a larger cafeteria, additional
wellness facilities and several outdoor decks and patios.
We hope to host you once construction is complete, but in the
meantime, we will use the Extra Mile to keep you updated on how
things are progressing around here!
What started out as a wooded area and parking lot is now an active construction site. The land is cleared, the
lower level is dug out and the walls and foundation are complete. Next comes the cranes and structural steel!
23

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