Protecting Your Business on the Road
Ideally, a business auto risk management program addresses all automobile risks your company may face on a daily basis. Fleets, passenger cars, vans and other vechicles driven by employees on company business should be factored into your risk management program. Without proper planning and insurance, transportation operations, such as sales calls and errands that require employees to drive their personal vehicales or those owned or leased by your copmany, may resuly in business loss. Taking preventative action to reduce motor vehicle accidents before they occur is the first step toward any successful business auto risk management program.
Screen job applicants
Anyone can have a car accident, regardless of his or her driving ability. Inquiring about a job applicant's driving record and performing a drug test could save you from hiring a potential risk. Driver attitude and behavior also are important considerations.
Encourange consistent use of seatbelts
According to the Network of Employers for Traffice Safety (NETS, 2016), US employers are collectively spending an extra $5 billion per year on traffic crashes involving employees who did not wear a seatbelt while driving or riding as a passenger, whether they were on the job or off. In addition, medical costs paid by employers per employee injured in a crash were nearly double in on-the-job crashes where the employee was not wearing a seat belt and increased by a third for off-the-job crashes.
Choose vehicles with a focus on safety
Vehicles that are equipped with safety features will better protect your employees in case of an accident. Seat belts may be the most effective safety feature, adn they can be found in every new vehicle. Airbags, anti-lock brakes, and daytime running lights are also important safety features.
Even your best efforts cannot prevent all accidents. An effective business auto risk management program is not complete without a sound insurance plan. Be sure you know what your business auto policy covers and what it does not. You'll find the details of your coverage on the policy declaration page. As your business grows and changes, make sure your insurance protection is adequate. Consider the following:
- Non-owned auto coverage
Be certain your policy covers for employees' use of their own vehicles for company purposes. Your policy should indicate coverage for "non-owned autos." This is often designated by symbol 9 on your declaration page.
- Choosing the same carrier
Depending on the nature of your business, consider purchasing your business auto policy and your commercial general liability policy from the same insurance company to avoid possible complications when a claim could be covered, or excluded, by both policies.
- Coverage for vehicle contents
Vehicle contents are generally not covered by a business auto policy, so you should make sure proper coverage is in place via the policy providing your business personal property coverage.
A sound auto risk management program analyzes the best ways to protect your property from fire, theft, collision, and other losses. There are many options available to meet your business auto needs. Assess your company's current operations to help identify high-risk exposures, and then find effective methods for loss prevention. Remember, a quality business auto risk management program can have a positive effect on your company's bottom line. For more information, contact one of our qualified insurance professionals.