Bennett Financial Services

Many businesses and organizations own or lease a fleet of vehicles to carry on their business; however, vehicle accidents result in significant cost for many organizations.  Managing this risk correctly will result in fewer and less expensive losses which will translate into lower insurance premiums.

Your organization’s liability can arise from a variety of sources including the use of employee owned vehicles.  Remember that through the legal principal of vicarious liability, an employer is generally responsible for the negligence of its employees or volunteers while they are operating vehicles or equipment within as a part of their job.

To minimize your liability, manage this risk by consulting a qualified insurance agent to set out an appropriate plan of action.  Use your agent to determine the extent of fleet loss exposures.

Preventative maintenance is an essential part of an effective fleet risk management program. Implement a preventative maintenance (PM) program that includes a regular inspection and maintenance schedule. Vehicle-operating manuals will often suggest a maintenance routine. Make sure that all maintenance is documented.

Comply with all provincial and federal legislation and regulations that apply to motor vehicles.  The Motor Vehicle Safety Act sets out standards and inspection requirements for all vehicles and equipment in Canada. The National Safety Code (NSC) for motor carriers is mandatory for trucks, tractors and trailers with a registered gross vehicle weight greater that 4,500 kg (10,000 lbs).

Create appropriate corporate fleet policies and procedures that could include a Motor Vehicle Safety Policy that would outline how the organization expects their drivers to perform including maximum allowable speed, safe following distances, parking, reversing, night driving and fuel handling.  Reward and publicize safe driving.

Implement a Vehicle Selection and Acquisition Policy that would establish the minimum safety requirements for new vehicle purchases; a Preventative Maintenance (PM) Policy; a policy for the disposal of vehicles to ensure that ownership is entirely transferred; a Driver Screening and Hiring Policy to establish minimum requirements of drivers (e.g., number of years experience, maximum number of traffic violations, etc.); a list of unauthorized uses including driving while impaired (drugs, alcohol, prescription medications, health impairments, fatigue, etc.), personal use, driving outside given geographical areas, etc.   

Create an appropriate fleet safety manual for drivers that would include all company policies and procedures related to driving.  Communicate any policy/procedure changes to all drivers. 

Encourage drivers to give feedback and suggestions about how to improve fleet safety. Ensure that drivers receive regular training and provide refresher courses.

To prevent theft, ensure vehicles are stored in a safe place after hours to prevent theft; install vehicle alarm systems; lock the doors; do not leave valuables in plain view. 

Ensure that indoor storage of vehicles is safe and that safeguards such as exhaust fans, fire suppression systems, fire alarms, etc. are in place.

Employee owned vehicles - You should carefully consider the risks associated with employees or volunteers using their own vehicles for your organization’s purposes.  Because you cannot insure a vehicle that you do not own, implement a written policy for non-owned autos including obtaining proof that employees have appropriate insurance; you can reimburse them for some or all of their expenses, and there is insurance available to protect your organization, but the vehicle owner must insure the vehicle; the minimum liability insurance you require; how employees or volunteers are to use the vehicle as a part of their job.

Ensure drivers know the procedure to follow in the case of an incident/accident.  The way that accidents and incidents are handled can have a significant impact of the cost of claims.  Provide them with a first-aid kit and a safety kit.  Make sure they know their supervisor’s phone number and the phone number for emergency services.  Instruct your drivers never to admit liability after an accident.  Call or ask a bystander to call 9-1-1 or the emergency number for the police, ambulance and fire department if necessary. Do not leave the scene of the accident unless it is to call one of those services.  Park the vehicle in a safe location and turn on applicable warning signals.  Attend to injured persons. Do not attempt to move injured persons unless it is to get them away from an area of immediate danger.  Do not attempt treatment beyond first aid.   Notify a supervisor as soon as possible.   Complete a fleet incident or fleet accident report.  Report accidents to your insurance company.  Provide them with the details of the accident; and any information about steps that had been taken to avoid the accident.  Take pictures of the area where the accident occurred.  Record the names and contact information of any witnesses. Record detailed descriptions of the accident from the victim and witnesses.

Investigate potential causes and implement preventative measures. Consider striking an Accident Review Committee, especially if you have many vehicles.