When an employee drives away on business, your company is technically behind the wheel.  Whether the road trip involves several delivery vans or simply one employee driving his or her car to the office supplies store, your business could be responsible for any accident that may occur during the drive.  Unfortunately, the risk of motor vehicle accidents involving employees is high.  Statistics show that these accidents are the leading cause of on-the job fatalities, comprising 35.8 percent of work-related deaths.

Business Auto Risk Management Program

A business auto risk management program ideally addresses any and all automobile risks your business faces daily.  Identical fleets, or passenger cars, vans and other vehicles driven on company business by employees, are often overlooked in a risk management program.  This means transportation operations such as sales calls and errands requiring employees to drive personal vehicles, or one owned or leased by your company, are open targets for business loss.  Taking preventative actions to reduce motor vehicle accidents before they occur is the first step to any successful business auto risk management program.

There are many strategies you can use to improve the safety of your employees on the road, but they all share one important focus-prevention.  The following are a few suggestions:
 

• Screen your job applicants.  Anyone can have a car accident, no matter how well he or she drive.  However, experts agree that up to 95 percent of all accidents could be prevented by defensive driving.  Inquiring into job applicant’s driving records and performing drug tests could save you from hiring an added risk.  Driver attitude and behavior are also important considerations.

• Encourage seat belt use.  According to the Network of Employers for Traffic Safety (NETS), many lives could be saved if seat belts were used consistently.  NETS found that a 10 percent increase in seat belt use results in 1,700 fewer deaths nationwide.

• Purchase cars or trucks with safety features.  Well-equipped vehicles will better protect your employees if they are involved in an accident.  Seat belts are rated as 42 percent effective, and air bags provide an additional 18 percent protection against fatal injuries in a crash.  Anti-lock brake systems are also an important safety feature.  Another option is daytime running lights, which make it easier for other drivers to see your vehicle.

Even your best prevention efforts cannot stop all accidents.  An effective business auto risk management program is not complete without a sound insurance plan.  It is important to know what your business auto policy covers and what it does not.  The extent of coverage is indicated on the policy declaration page by numerical symbols one through nine.  Coverage decreases as the numbers increase.  Most of the coverage-level provisions can be found in a simplified language form called the business auto policy, or the BAP.  Available since 1978 and last revised in 1992, the BAP is used by most insurers as a basis for coverage.  The following are further considerations in business auto policies:
 

• Be aware of what your policy will not cover.  Exclusions are common in most commercial policies, and the business auto policy is no exception.  For example, a “pollution exclusion” states that the policy will not cover any liability claim resulting from the transport of hazardous materials.

• Whenever possible, your business auto policy and your commercial general liability policy should be with the same carrier.  This prevents problems caused by conflicting company definitions.

• Theft, fires, and other property coverage exposures must be controlled as part of your business auto risk management program.

There are many options available to meet your business auto needs.  We can analyze your company’s current operations to identify high-risk areas, then help you find effective methods of loss prevention.  Please stop in or call today-a quality business auto risk management program can have a positive effect on your company’s bottom line.