March-April 2012

Lowering Risks With Company Vehicles

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Photo: @iStockphoto.com/Bibigon

Wednesday, February 22, 2012

By Daniel C Brown

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More than 1,300 workers die each year from crashes on public highways. And more than 300 workers die each year from crashes on the highway or on industrial premises, according to the Occupational Safety and Health Administration.

Based on those statistics, it’s not surprising that driving is one of the leading causes of work-related fatalities in the United States, says Steve Bojan, a senior risk engineer with Zurich North America, an insurance company. All organizations with automotive and truck fleets should address a number of critical areas to better control the risks associated with vehicle operations. Risk or fleet managers for nontraditional truck fleets, for example, often find it very difficult to control the risks associated with their fleets due to a lack of expertise, remoteness of operations, or operational challenges.

To help control the risks associated with vehicle operations, it’s important to identify who is driving the vehicles and when they are being used, says Bojan. This can include identifying when the vehicles are being driven for company-related business as well as monitoring and controlling who drives the vehicles while at work.

And, you can employ a driver-training program. A driver training program should be required of all drivers operating a company vehicle, but some remedial driver training can be used to target those drivers deemed as being a higher risk.

The first step in assessing a fleet program is to determine which positions require the use of a vehicle. It’s important to take into account those employees with jobs that seem more stationary, such as administrative personnel who may drive to the bank, maintenance workers who pick up parts at the hardware store, and managers who on occasion drive to customer locations. The fleet program can identify such travels and offer opportunities to eliminate or consolidate those trips. It’s quite possible to reduce the number of employees out on the road at any given time.

The next step in assessing a fleet program is to establish policies on where and when employees can use their vehicles for work or for pleasure. When giving company cars to employees, it is important to set parameters so employees have a good understanding of how the vehicles are to be used.  Be sure to ask yourself the following questions: Does the employee need to come back to the company lot at the end of the day or can the employee take the vehicle home? Is the personal use of the vehicle allowed, and can it be used by other members of the family?

Another important step is to review the driving history of all individuals driving on company business. This is an important step in controlling who is allowed to drive on behalf of the organization.  A motor vehicle record (MVR) can usually be obtained from the issuing state’s department of motor vehicles—with the driver’s permission.

The MVR provides a record of what types of vehicles the employee is licensed to drive, when these licenses were obtained, and any moving violations that the driver has been convicted of.  History often repeats itself and most drivers do not change their underlying habits behind the wheel of a company car. A driver with a number of recent minor violations, or a couple of significant moving violations will often use the same risky behaviors while out driving for the company.

To help identify at-risk drivers, it is very useful to create objective criteria for reviewing MVR’s, says Dave Johnson, a senior risk engineer with Zurich. The criteria can include a maximum number of moving violations in the past few years (often the last three years) and a maximum number of critical violations in a somewhat longer period of time. Critical violations include driving under the influence, leaving the scene of an accident, and excessive speeding. The scoring mechanism can also take into account factors such as driver age, number of vehicle crashes, and experience in the type of vehicle to be driven.

The MVR review can be used prior to authorizing a driver to use a vehicle on company business and on a regular basis to identify changes in the driving record. Additional methods to identify high-risk drivers can include supervised on-road driver observations, citizen complaints, and vehicle crash reviews. Many companies are also using telematic data, which can include information on vehicle speed, hard-brake events, and excessive acceleration that has been communicated directly from the vehicle to company officials.  

Once a high-risk driver has been identified, a decision must be made about whether to dole out some form of disciplinary action or undergo remedial training. In many cases, remedial training is viewed as discipline by seasoned employees. The corrective action and/or training should be in accordance with the severity of the violation and it should be documented. Many companies will require high-risk drivers to complete defensive driver training. With any training, a documented knowledge check at the end of the course is very advisable.

In 2006, the American National Standards Institute (ANSI) created the Z-15 standard for fleets. It encapsulates many of the best practices for fleets. The Z-15 standard does an excellent job of explaining the roles of various entities within the organization with regard to fleet as well as a number of controls for improving fleet safety. Important components of the program include MVR review and driver training.

Author's Bio: Daniel C. Brown writes on safety and technology in the construction industry.



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