July 2009, Work Truck - Feature
5 Tips to Help Determine Your Fleet’s Insurance Coverage
What should a company look for in insurance coverage for its fleet vehicles? An industry expert suggests a regular policy review and offers guidelines to obtain insurance best suited to individual company needs.
By Sean Lyden
Best Practices Can Impact Insurance Rates
✔ Driver Screening
"There's a whole series of things you can do when you're hiring," says Scott Kegler, an insurance broker with Philadelphia-based The Graham Company. "You want to pull the motor vehicle record of your drivers. Set up a scoring system so that you'll have a company policy that says if the driver has above 'X' number of points, you don't hire him. This way, you have something solid in place to evaluate when you're looking at driving records. We also highly recommend drug testing prior to the job offer and if there is reasonable cause after an accident."
These steps can be outlined in fleet policy concerning employee hiring.
✔ Accident Reporting Procedures
Kegler advises putting a card in every vehicle instructing drivers on actions to take in the event of an accident.
"Make sure the card is simple to follow. One number to call and guidelines on what to do and say after an accident. After you get into an accident, you're upset. You're not thinking clearly. You can get into trouble if you don't do or say the right thing after an accident. The card serves as a guide to ensure the driver follows proper procedures and minimize your risk," Kegler explains.
✔ Disposable Cameras in Glove Box
"Take pictures of the accident scene," Kegler advises. Visual documentation "can be huge to defend your position."
✔ Cameras / Driver Cams
A new technology available with cameras can be installed in company cars and trucks.
One system offers two views: what the driver sees and a view of the driver. "Was the guy talking on the cell phone, texting, or trying to eat a Big Mac while driving down the road?" says Kegler. "Camera systems like these will help you monitor that behavior."
The in-vehicle camera systems also provide documentation of fault in a crash occurrence, protecting drivers and the company against false claims.
At A Glance
Tips to secure the right commercial auto insurance policy include:
■ Select liability coverage termed "Symbol 1, Any Auto".
■ When increasing coverage to a $2 million limit per occurrence, obtain quotes from both primary carrier and umbrella policy writers.
■ Base the deductible on per-occurrence catastrophe versus per-vehicle.
■ Consider self-insuring physical damage coverage.
■ Consider declining - or accepting only minimum limits for - uninsured/underinsured motorist coverage.