Many companies that send employees on the road to conduct business are unaware of all the potential risks associated with on-the-job driving. Even minimal exposure can result in a loss for the business so it is critical that companies are aware of and implement the proper risk management strategies and protect themselves with commercial auto insurance.
According to Transport Canada, six Canadians are killed in motor vehicle accidents each day, and many more are severely injured. Given these statistics, you may want to discuss auto coverage options with your HUB consultant to ensure your business is properly protected if an accident should occur.
Employing risk mitigation strategies
It is critical for all companies to learn more about reducing automotive risk if their employees are ever on the road for business. Safety should be a primary concern and steps should be taken to reduce the chances of accidents caused by employees or other drivers. Developing programs and initiatives that encourage employee road safety can not only limit the risk of costly and tragic accidents, but also limit a company's coverage expenses.
Ongoing training is essential
Every driver can benefit from consistent skills training to enhance their abilities and increase their safety awareness. Changing seasons bring different, and potentially dangerous, driving conditions. Employees should be reminded of how to deal with these conditions when they head out in the snow or rain. Consistent training can also keep drivers up to date on the latest rules of the road, ensure they are abiding by current laws, and keep employees - and other drivers - safe while they are operating a vehicle.
Strict policies can be helpful
When looking to lower coverage costs by ensuring company drivers are safe, it's important to have non-negotiable rules in place that employees need to abide by at all times. For example, drinking and driving while on the job is unacceptable, as this dangerous habit can not only lead to citations and accidents, but also more expensive insurance costs. Similarly, workers should be prohibited from using electronics while on the road, as distractions such as text messaging and email can lead to serious consequences for both companies and the employee. In both cases, employees should be expected to follow the laws in their jurisdiction but should also understand the consequences their actions while on company business.
Take your own rules seriously
If you forbid employees from responding to messages while on the road, don't expect them to make an exception for your emails. Rather, respect their need to drive carefully and limit the amount of times you try to contact your workers while they are operating a vehicle.
Limiting expenses is possible
By employing some of these strategies you may prevent collisions, but if your company is looking for additional ways to bring down the cost of insurance, here are some other options to consider:
Review employee driving habits
If, after conducting a check on a new employee, you find your recent hire has a history of road violations or accidents, leaving him or her off your insurance policy and not authorizing driving privileges may be a financially savvy move. However, such investigations should be done consistently so employees can gain the chance to drive under a business policy and long-term employees are discouraged from picking up bad driving habits during non-business hours, raising your employee insurance costs.
Consider your current fleet carefully
If your company still has several older vehicles you are likely to get rid of in the near future, it may be possible to eliminate collision coverage on those autos while still protecting the drivers in them. However, dropping such coverage should be carefully considered and discussed with your HUB consultant.
Be aware of options for new vehicles
When purchasing new automobiles for your business fleet, there are steps you can take to reduce coverage costs and still have complete coverage. Consider obtaining vehicles with a lower insurance cost that will still suit your business needs, installing theft deterrent systems in company vehicles and limiting auto use in favor of public transportation when possible.
If you're seeking additional ways to lower business insurance costs and still protect employees on the road, speak with your HUB consultant about additional coverage options or packages that can help cut costs while still mitigating business risk.