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Auto insurance is a fundamental part of any company that owns a fleet of vehicles, and its cost is increasing with each renewal! One well-known tool in risk management is a Motor Vehicle Report (MVR), but you may want to consider additional ideas – which we have outlined below. Insurance companies are expecting business owners to take the necessary measures to improve the safety of your employees and your vehicles on the road. Furthermore, these ideas will create a positive narrative about your company’s proactive risk management behaviors with the underwriter at each policy renewal.
1. Reward Good Driving
Incentives for good driving habits are an excellent way to honor your best drivers. For example, you can use GPS data to reward your employees for maintaining a safe speed or avoiding hard braking or accelerating. As a non-monetary incentive, you can reward more experienced drivers by offering them leadership opportunities, such as training new employees.
2. Avoid Personal Use of Company Vehicles and Company Use of Personal Vehicles.
When an employee uses their own vehicle for your business, your automobile policy may provide coverage. Hence, avoiding personal vehicle use for company business could be prudent. Additionally, not allowing personal use of company vehicles is a wise policy. This will ensure that the driver’s family members do not board or drive the vehicles. With this type of company protocol, the employee could be held responsible.
3. Use Dash Cameras Wisely
While being monitored at work may generate resistance at first, there are several reasons why incorporating dash cameras protects your people, your profits, and your property. Most notably, upright business owners justifiably desire to protect the livelihoods of every employee under their leadership. Furthermore, should an accident occur, you can easily and quickly verify which maneuver or driver caused it. As a result, you avoid fraudulent claims and get back on the road to revenue generation quickly!
4. Driver Qualifications and Talent Retention
Besides upholding minimum state laws for drivers, having a solid MVR and safe driving culture can serve to attract and hire the best drivers. Training and educating your drivers will improve your company culture and possibly create higher retention rates. Another idea to consider is having two employees per vehicle (pilot and co-pilot) to increase accountability and have less wheels on the road, if possible.
5. Alcohol Policy
Driving under the influence of alcohol or other substances is dangerous and punishable by law and your company should have a zero-tolerance policy towards it. This will strengthen the company’s image and values to outside parties – including underwriters. In addition, off-the-clock MVR violations related to alcohol could have a punishment up to, and including, termination. Safe driving off-the-clock will often lead to safe driving on-the-clock.
6. Routine Vehicle Inspection
Proper fleet management includes vehicle inspection to verify that they are in optimal condition and operating efficiently. In this way you will not only improve the safety of your fleet but also save money and avoid fines or penalties. Inspections are a proactive measure of comprehensive prevention, and you must keep organized records of the inspections by each vehicle.
7. Driver Training
As a fleet management leader, training your employees is essential to ensure driver safety. If your insurance company does not provide such a list or you are not satisfied with their topics, we would love to be of assistance. We have the best resources available in the market to educate your drivers on fleet safety.
8. Accident Reporting Packets
By request, this is provided by IMA for your simple implementation. It has accident reporting procedures for ALL your policies. As it relates to automobile policies, when an accident occurs, and after verifying that everyone is okay, it will be essential to collect as much information as possible. For this reason, this packet should be provided and available in each glove box compartment.
Creating and managing a safety-minded fleet is complicated, costly, and uses your time. So, is it worth it? Yes! For this reason, as a fiduciary of your company’s resources, you should entrust this fleet management task to a reliable employee or committee within your company. If you believe that your company lacks adequate resources for the proper management of your fleet, do not hesitate to contact us. The ball is in your court, now. We would like to know how we can assist you in proactively taking the reins of your fleet’s safety management.
Have questions? Contact:
Commercial Insurance Advisor
This material is for general information only and should not be considered as a substitute for legal, medical, tax and/or actuarial advice. Contact the appropriate professional counsel for such matters. These materials are not exhaustive and are subject to possible changes in applicable laws, rules, and regulations and their interpretations.
©IMA Financial Group, Inc.
2021 | 04/2021