Smart Practices for Small Vehicle Fleet Safety

Is the exposure to your organization from employees driving on company business significant? You bet it is! In this article you will learn why and what you can do to minimize that exposure.

First, motor vehicle-related incidents are consistently the leading cause of work-related fatalities in the United States. Of the occupational fatalities reported by the Bureau of Labor Statistics, 35% are associated with motor vehicle collisions. Between 2003 and 2009, on average:

• 1308 workers died each year from crashes on public highways

• 316 workers died each year in crashes that occurred off the highway or on industrial premises

• 347 pedestrian workers died each year as a result of being struck by a motor vehicle

Source: U.S. Department of Labor, Bureau of Labor Statistics

Even more alarming are the traffic collision statistics reported by the National Highway Traffic Safety Administration (NHTSA). In 2010 in the United States, there were a total of:

• 32,885 deaths
• 2,243,000 injuries
• 5,419,000 total collisions
• 9,566,928 vehicles involved

The National Highway Traffic Safety Administration estimates that the average American has a 30 percent chance of being involved in a serious automobile accident in their lifetime. Further, according to the National Safety Council, the average cost of injury in a car accident is $61,600.

Second, in light of those statistics, two objectives become critical for organizations: 1.) to prevent traffic collisions from happening and 2.) to mitigate the losses should traffic collisions occur. In order to do that, follow these smart safety practice tips:

• Safe Driving Policy - Develop and implement a safe driving policy, which establishes the expectations for employees operating company vehicles or personal vehicles while on company business. For example, if wearing a seat belt is considered safe behavior by your organization (which, of course, it is), then state so in writing. Unfortunately, if you do not “put it in writing,” it is often times successfully argued that it was not clear enough and/or the organization did not deem it important enough. So be clear and specific.

• Driving Record Review Criteria - Establish driving record review criteria that are consistent with your organization’s current auto liability insurance carrier. In most cases, the Carrier will share these objective criteria with you. In turn, will be able to effectively and efficiently evaluate a candidate’s driving record on the spot.

• Monitor and Evaluate Driving Records - Conduct driving record checks at time of hire, before reassignment to duties that will involve driving, and, at least, annually. This helps to ensure that employees with acceptable records are driving on company business and, in the event of a traffic collision, minimizes the possibility of a negligent entrustment case.

• For candidates/employees residing in Michigan, the best way to monitor their driving record is to use the Michigan Secretary of State’s Driving Record Subscription Service . This service provides organizations with the driving records of their employees on an annual basis; or whenever there are any violations, restrictions, suspensions, or revocations posted to the record.

• For candidates/employees whom recently moved to Michigan or currently live in another state, you may not get a complete driving record unless you use a service that pulls from the database in the other state(s). In these cases, you may have the candidate/employee provide you with an original and current driving record for review OR you may contract with a service (e.g., online service or your insurance agent/broker) to gain access to driving records.

• Vehicle Use Policy – Develop and implement a vehicle use policy that details how a company vehicle may be used at work and home (if you allow vehicle to be taken home), who is allowed to drive/ride in company vehicles, acceptable limits of insurance for personal auto policies for those employees driving their personal vehicle while on company business, etc.

• Defensive Driver Training – Many effective defensive driver training programs, for example, the National Safety Council, Smith System, and insurance carrier-based, exist today. The key is to select one that fits your needs, balancing cost and effectiveness, in order to proactively educate and train your employees. Do not just assume that your employees know and use defensive driving skills. While experience is a great teacher, it is far too costly to be relied upon in this case. For every $1 spent on defensive driver training, you can quite literally expect to save $10,000 down the road.

• Monitor On-road Performance – Use some means to monitor on-road driving behaviors so that you receive feedback on employees’ driving. The key is to catch unsafe driving behaviors and intervene before citations are issued or collisions occur.