Protecting from Risk Through a Comprehensive Vehicle Safety Program

By taking a proactive approach, companies can mitigate risk for themselves and better protect employees.

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Photocreo Bednarek.stock.adobe.com

For companies with employees driving for work, risk management is a constantly evolving and intricate challenge. It’s important to understand the shifting landscape of risk and be equipped with the tools that keep the company and more importantly, employees, safe. The Department of Transportation’s recent report findings from 2022 discovered that an estimated 10,528,849 vehicles were involved in police-reported traffic crashes, while an estimated 1,900,539 passenger vehicle occupants were injured. Considering that each year, motor vehicle crashes cost Americans $242 billion in medical care, rehabilitation and lost wages; companies cannot afford to be adding to that figure with lawsuit costs, which can cost tens of thousands of dollars per case. Given the immense danger not only to the health of employees, but company financials, it’s vital to be prudent and proactive with programs that help to protect businesses and their bottom line.

By implementing a comprehensive driver safety program involving insurance verification, motor vehicle record (MVR) checks and driver training, leaders can feel confident in their checks and balances as it relates to managing risk and promoting safe practices. Building a robust and effective monitoring program ensures insurance coverages meet the minimum required coverage levels that stay in place throughout the year. Continuous monitoring for motor vehicle record infractions can be crucial aid in protecting both the company and its mobile employees.

State of the Driving Industry and What it Means for Vehicle Programs

For many organizations, employees who drive for work are integral parts of the operation. Beyond just their vehicle, they drive forward the success of the company. However, given the exponential growth of risk, whether that be accidents, lawsuits, or improper insurance registration; for example, carrying less than company required insurance coverage levels or lapsing by not paying monthly premiums -transparency and due diligence are key. This is especially true as the latest data shows the number of households that have at least one uninsured vehicle rose to 5.7% in the first half of 2023 from 5.3% in the second half of 2022, according to J.D. Power. Given that employees who drive for work are on the road more often than average, exposure to risk is naturally higher. For the safety of the company and the individual, ignoring that risk is not an option. Three integral tools can help enable visibility and safety across the company: insurance verification, motor vehicle records and driver safety training. Each covers an essential aspect of driver safety. Through the implementation of each, blind spots can be avoided, and drivers can hit the road with minimized risk.

The below sections outline each tool and its benefits and share best practices on implementing a comprehensive driver safety program.

Insurance Verification

Auto insurance is as fundamental to a company driver as a driver’s license. However, companies are often surprised to discover that their driving population may not be fully insured. This can be a result of auto insurance expiring without either the employer or employee noticing. Alternatively, with auto insurance costs rising, some are making difficult monetary decisions to cancel insurance after vehicle registration. In just the past year, the average annual cost of full-coverage car insurance has risen to $2,278, a 12% increase from 2023, according to Bankrate. In 2022, approximately 14% of drivers were uninsured, a 3% increase since 2019.

Verifying auto insurance should be a primary step when hiring an employee for a driving position. Beyond the initial check, continuous monitoring can detect any changes and promptly notify both the employer and the employee. Integrating this tool within HR systems can help ensure continued compliance and mitigate financial risk in the event of an accident.

Motor Vehicle Record Checks

Motor vehicle records detail an individual's driving history, including traffic citations, accident reports, as well as any license suspensions. When an MVR report is pulled, it provides the most current information available, which is crucial for companies hiring employees for driving roles. Many businesses utilize MVRs early in the hiring process to screen candidates. If a candidate has a problematic record, an MVR report can quickly disqualify them from the position.

Where the challenge lies, is once an employee is hired for a driving role, many companies do not conduct subsequent MVR checks. This can be problematic. For example, if an employee hired years ago is at fault in a car accident, the employer would need to know, especially if the employee drives for the company. Companies that only check MVRs during hiring might miss such incidents unless the employee reports them. To avoid this, proactive companies implement recurring MVR checks on a yearly, quarterly, or even monthly basis. By Identifying high-risk drivers, MVR checks can help lower risk and prevent future incidents.

Driver Safety Training

While insurance verification and MVR checks are crucial for preventing unqualified employees from assuming or remaining in driving roles, these methods are reactive. By supplementing with proactive safety training, companies avoid the pitfall of addressing issues only after problematic driving behavior has occurred. Various forms of driver safety training are available, but many offer only broad lessons on the dangers of reckless driving. Effective safety training should start with an assessment of the driver’s current performance, analyzing reaction times and identifying bad driving habits. Based on this assessment, tailored modules can be created to address specific issues for each driver, tackling problems before they lead to accidents.

Planning for a Future of Safe Fleet

Integrating insurance verification, MVR checks, and driver safety training is essential for a comprehensive approach to fleet safety. This integration closes the blind spots left by relying on only one or two methods. To get started, companies should conduct an initial assessment, plan their strategy, and allocate necessary resources. By taking a proactive approach, companies can mitigate risk for themselves and better protect employees. Regular monitoring and evaluation of safety strategies ensure continuous improvement. The future of a safe fleet starts with having the right tools in place. 

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