Your Fleet Safety Management Questions Answered

Nuclear verdicts, jury awards exceeding $10 million, continue to drive up commercial auto claim costs and create significant liability exposure. While these claims may seem unavoidable, many of the factors that contribute to devastating verdicts can be addressed through stronger driver management and fleet safety practices.

One of Safety National’s Risk Control Managers, Erica Baird, answers some of our most frequently asked questions about driver risk mitigation.

If your organization is using telematics, do you have to notify employees that this data is being collected?

State laws will vary with some requiring written consent before tracking, but it is generally a best practice to notify them (confirm state law requirements with your legal counsel). It is important for employees to fully understand why you are using the data: to ensure both their safety and to keep the roadways safe. If you are effectively using your telematics data, then you are probably coaching your drivers, which means they will know they are being monitored anyway. If you are monitoring employees and not telling them about it, you are breaching their trust. It is important to be open and transparent about it.

Do you have a recommendation for how often we should review motor vehicle records (MVRs) of ongoing employees?

At a minimum, MVRs should be reviewed at least once a year; however, be aware that when you wait a full year between reviews, a lot can happen during that time. A driver could incur multiple tickets, or major violations, like a conviction for driving under the influence (DUI) or a vehicular manslaughter charge that could be missed. Review the information as consistently and often as you can to make the best decisions.

What is the best way to request MVRs for a large number of employees that include both fleet vehicles and personal vehicles used to travel between facilities on a regular basis?

MVRs should be reviewed either as part of the hiring process or during an employee’s onboarding if they are expected to drive for business purposes. Ongoing reviews can become difficult when you have a lot of drivers, but there are resources and tools available. Your broker and some third-party organizations can help with regular tracking systems. Some states offer Employer Notification Services or Pull Notice programs that send timely, automated updates of moving violation convictions and license status changes which can help with consistency in tracking. This means you are receiving regular updates without having to review each employee’s MVR and may be the most effective way of monitoring a large number of drivers.

If employees drive their own vehicles, is their insurance primary? Then the company’s policy is secondary?

Yes, the employee’s vehicle insurance is supposed to pick up the cost of the accident first and anything that exceeds their limits would be the responsibility of the organization or its auto liability insurance policy to cover. If an employee’s insurance limits are too low, medical costs can easily exceed the minimum limits when someone is injured. Requiring employees to carry higher coverage limits on vehicles used for business purposes can provide a little more protection for the organization and helps ensure there are no gaps between what their policy will pay and when the company’s policy picks up coverage. It also provides the employee with better protection outside of work. Talk to your broker to understand how employees’ car insurance policies interact with the company’s auto liability policies to determine the best plan for everyone involved.

What fleet safety driver controls or policies should be in place for companies that have expat employees from another country?

Regulations and licensing requirements may vary from state to state, so make sure your policies are in line with state requirements. Driving practices can be very different from one country to another. Consider where the driver is coming from and any obvious differences such as whether vehicles are driven on the opposite side of the road. Provide driver training specific to U.S., so that employees can become comfortable with roadways and traffic laws. Ride-along fleet safety training can be helpful. If there is a language barrier, providing training in the employee’s preferred language may help ensure understanding.

Is there ever a chance that a personal auto insurance carrier could push back and state that the individual is not insured for business use?

Yes, and it is important to be aware of this gap. Personal auto insurers are not always willing to accept the driving exposures associated with commercial vehicle use. Certain business-related activities may be specifically excluded by the policy. When the primary insurance denies coverage due to an exclusion, the employer can become liable for the full cost of the incident.