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Commercial Auto
Driver Hiring and Evaluation
Driver Training
Driver Safety Policies
Vehicle Condition Evaluation
Vehicle Maintenance
Accident Investigation, Reporting and Review
Risk Control Coverage Guide
Appendices B
1. Evaluating Motor Vehicle
    Reports (MVRs)
2. Commercial Driver's License
    (CDL)
3. Road Test
4. Sample Company Vehicle
    Agreement
5. Vehicle Safety Inspection
6. Driver's Accident
    Reporting Kit - English
7. Driver's Accident
    Reporting Kit - Spanish
8. Automobile Additional
    Resource List
Bulletins
Management Guide for Determining Accident Preventability
Preventing Commercial Truck Thefts
Using Technology to Monitor your Fleet
 
©2007 FCCI Services, Inc.
Commercial Auto Risk Control
A properly designed and implemented Commercial Auto Risk Control program will control vehicle related loss exposures, reduce vehicle accidents, and help you avoid costly and unnecessary claims against your business. Successful companies have long recognized that the money they spend on vehicle safety programs typically provides a superior return on their investment.

The basic risk control practices employed by companies with large fleets can be successfully applied by any company that uses a vehicle to conduct business. This is true whether it's a company owned or leased vehicle, a vehicle you rent while on a business trip, or the vehicle owned by an employee that is used for your company's business.

Perhaps the most important key to having an effective Commercial Auto Risk Control Program is to establish hiring and screening practices that will insure you hire qualified and safety-conscious drivers. Fleet safety professionals caution that you should: "Avoid hiring your problems!"
Driver Hiring and Evaluation   

Not everyone is qualified to drive your company vehicle(s). In fact, there are some individuals you should not allow to drive any vehicle, even their own, while conducting your company's business. Your assets and reputation are at risk. Your driver(s) can play an intricate part in improving or damaging your company's reputation simply by the way the driver operates the vehicle (i.e. too aggressive, road rage, impeding traffic, inconsiderate of others, or reckless operations of the vehicle).

To protect business, property, and people you must be certain that the drivers you hire are licensed and qualified to drive the size and type of vehicle they will operate for you. You have an obligation to be as certain, as is reasonably possible, that they will drive safely. You have the same obligation to properly evaluate anyone you allow personal use of company vehicles. An essential first step toward fulfilling your obligation is establishing a process for review and evaluation of the driver's motor vehicle records (MVRs). This is a must for anyone who operates a company vehicle or who operates his/her own vehicle on company business. See Evaluating Motor Vehicle Records (MVRs) (Appendix B1) for guidelines.

Other recommended good practices for hiring and evaluating employees who will operate vehicles for company business purposes include:

1. Use a suitable employment application to obtain driver license number(s), relevant driving
    experience by type of equipment, training, accident record and traffic convictions (at least
    three years and not just job related), and job stability.
2. Verify employment and check references and training. Look for at least 2 to 3 years'
    experience driving the type of vehicle(s) they will drive for you.
3. Make a photocopy of the driver's license for your file.
4. Establish job description(s) listing essential job requirements and performance standards
    based on supportable criteria. Apply these standards consistently to all hires. Legal should
    review this document and the employment application.
5. Be sure to take special licensing requirements into consideration such as for a
    Commercial Driver's License (CDL) (Appendix B2).
6. Administer a road test in the vehicle(s) that your drivers are expected to drive. Be sure to
    document the test. See Road Test (Appendix B3).
7. If a driver is not required by law to have substance abuse and alcohol testing, have testing
    done in accord with an approved drug free work place program.
8. Provide for pre-placement physical examinations (i.e. after offer of employment but before
    start of employment).

Driver Training   

For properly protecting business, property, and people you will want to provide some training for even the most experienced drivers. At a minimum you should review your safety policies, rules, and procedures with them. Having a written document and having your new employee sign-off to acknowledge receipt of this document is a good practice to follow. The extent of training will depend, in part, upon the size of your fleet, type of vehicles, cargo, radius traveled, and loss history.

Defensive Driving Courses (DDC) should also be a part of your driver training program for all new hires and for driver rehabilitation situations with current drivers. For DDC information, contact The National Safety Council or Smith System Safety.

Driver Safety Policies   

It's not possible to develop a safety rule for every situation that might arise when operating a motor vehicle. To address all of the "what ifs" that need to be addressed, you need to establish driver safety policies. Policies can fill many gaps, and they also serve to confirm or reaffirm management's commitment to safety.

A company should have written vehicle policies that address:

•  Personal use of company vehicles
•  Operator qualifications
•  Zero tolerance for alcohol and drug use
•  Obeying all traffic laws
•  Accident reporting procedures
•  Determining accident preventability
•  Preventive maintenance
•  Use of seat belts
•  Securing cargo
•  Disallowing non-business passengers

For additional ideas refer to the Sample Company Vehicle Agreement (Appendix B4).

Vehicle Condition Evaluation   

Though human error is the primary cause of most motor vehicle accidents, we do need to do everything reasonable to insure that the vehicle itself is safe to drive. Any driver of a commercial motor vehicle who is subject to Federal Motor Carrier Safety Regulations is required by law to "satisfy himself" that the parts, accessories, and safety equipment are "in good working condition" prior to driving such vehicle. If not required by federal law, you may be subject to state or local law(s) requiring what are generally referred to as "pre-trip" or "post trip" inspections. Drivers must complete written "post trip" inspection reports for vehicles that come under Federal requirements. Before driving a vehicle, a driver must review the last driver vehicle inspection report and "sign off" on it if there were defects or deficiencies noted and there is certification that they have been corrected. If there is no Federal, state or local statutory requirement applicable, it is still good business practice to do it if you are serious about minimizing accidents. Refer to Vehicle Safety Inspection form (Appendix B5). Also, be sure to implement formal procedures to ensure needed repairs are completed promptly.

Vehicle Maintenance   

If you have reasonable vehicle maintenance practices in place, odds are your driver will not detect many problems, defects, or deficiencies at the time of the pre-trip inspection. Ideally these conditions will have been prevented as a result of an effective and conscientious maintenance effort. When determining what reasonable means, it might help to think about how a jury might evaluate them should your driver be involved in a serious accident. Should a jury have to determine if your vehicle maintenance practices are reasonable, they will likely have high expectations. The more grievous the injuries and the more sympathetic the plaintiff, the higher the standard of reasonableness that is likely to be applied. Also, if you don't keep good maintenance records, it will be difficult to have them believe that you did a reasonable job.

Poor vehicle maintenance can prove costly in other ways. In addition to potentially causing accidents, it can lead to lost income from failure to meet schedules, missed appointments, road break downs, etc. It might even void your vehicle warranty. On the other hand, a well-managed vehicle maintenance and inspection program can add thousand of miles to the life of a vehicle.

We strongly recommend that you maintain records on each vehicle (i.e. set up a file folder on each vehicle). At a minimum, the file should document:

•  Date of service
•  Identification of the vehicle
•  Current vehicle odometer mileage
•  What service was performed
•  Who did the actual work
•  What parts, if any, were replaced
•  What company manufactured the part(s)

Accident Investigation, Reporting, and Review   

Drive far enough and long enough and even those companies with superior Commercial Auto Risk Control Programs may have a motor vehicle accident. Because of this possibility, it is extremely important for you to be prepared. All vehicle operators must know exactly what to do in the event of an accident. When involved in an accident, emotions often run high and it is not a good time to start thinking about what needs to be done. To ensure prompt and accurate accident reporting all drivers must be prepared and trained. The Driver's Accident Reporting Kit (English - Appendix B6) or (Spanish - Appendix B7) is a useful tool for gathering information you will need to report an accident and to begin the accident investigation and review process. A copy should be in the glove compartment of every company owned or operated vehicle. Everyone who drives for you should be trained in its use.

If you gather all the necessary information about each accident, and review them with an open mind, you should ultimately conclude that most accidents are preventable. When evaluating your driver's actions, you should compare them against those of a driver who practices good defensive driving techniques. If the facts do not show that the driver did everything reasonably possible to avoid the accident, it is considered preventable. Our Management Guide For Determining Accident Preventability will provide you with useful information for making these determinations and coming to conclusions that are fair and consistent. If you are viewing this manual on our website, you may access it electronically through the preceding hyper link or call us for a printed version.

Your primary goal when reviewing accidents should always be to learn everything you can to help prevent a similar accident from happening again. However, properly conducted accident investigations will often provide you with information you need to identify and address defective equipment, inadequate maintenance, adverse road conditions, poor driving habits, driver training needs, improperly secured cargo, etc., which may be contributing factors in an accident. A review of accident reports, insurance loss reports, MVRs and other vehicle accident records should be performed on a regular basis to identify trends.