Do You Know Who Is Driving Your Vehichles?

Date Posted: 8/6/2013 1
Author: D. Allison

This is an issue that has become and is still evolving into one of the most important risk management and insurance issues facing businesses today. Why? Because a vehicle creates one of the largest exposures to loss that a business can face. As we all know, it is not the vehicle that causes an accident; it is the driver. There are many ways to address your vehicle and drivers exposure with different programs and safety ideas. I would like to discuss a couple of them here.

Implementing a driver hiring and retention policy is an important step. This policy should include criteria that must be met by the driver in order to be hired and retained as a driver for your company. This criteria should include requirements such as a minimum age, number of years driving similar type vehicles, minimum moving violations during a specific period of time, number of preventable accidents during a specific period of time, etc. Your Brown & Brown Account Executive can help you establish these. The policy should also include an explanation as to the disciplinary action to be taken by the company should these guidelines be violated: probation, re-assignment to a non-driving position and up to and including termination. This gives the driver a clear understanding of expectations and consequences before an incident occurs. A policy like this also assists your insurance company in knowing you are active with safety and understand the importance of the exposure you have on the road. This can also be beneficial at renewal time.

Obtaining annual Motor Vehicle Reports (MVR) are a key measure of the quality of driver you employ. This report will show a current snapshot of your driver as it relates to moving violations and accidents. You should obtain one at least once a year or have your employee bring one in. A good time to do this is at the employee’s annual review time.

When interviewing for a driver position, have any potential employee bring a current MVR with them for the first interview. If the MVR does not meet your driver guidelines there is no use going any further.

It is also a good idea to obtain Motor Vehicle Reports and Certificates of Insurance for personal automobile insurance from all employees driving their own vehicles for business purposes. As an employer, you have an exposure on the road. Should an employee be involved in an at fault accident, the employee and your business will be covered on the employees insurance until that insurance is exhausted. Once that limit is met, the Non-owned Automobile Liability Insurance coverage on your Commercial Automobile insurance policy will take effect and protect your business. It is important that employees driving their vehicles on your behalf have good driving habits and driving records along with good insurance limits since your policy may be called on sooner than you want it to.

There are many other things to be considered to implement a good driver safety program. Please talk with your Brown & Brown Account Executive for more ideas and solutions. The bottom line is that your vehicles are a main exposure to large losses and it doesn’t matter if you have one vehicle or 1,000. It only takes one accident!